German Manufacturing Orders Drop in November

German manufacturing orders slipped in November, marking its first decline since July 2017 on the back of a drop in domestic and international demand.

The gauge was down 0.4 percent in November from October on a seasonally and working day adjusted basis. The October reading was revised upwards to a rise of 0.7 percent from 0.5 percent previously, according to data by the Federal Statistics Office.

The Economy Ministry, detailing the figures, said the decline in November was a result of fluctuations in large orders but adds that the trend remained strongly upwards.

A breakdown of the data showed domestic orders dropped 0.4 percent on the month and foreign orders by 0.5 percent.

According to ING economist Carsten Brzeski, the overall fall ”is rather of a technical nature than any sign of weakness.

Germany is facing robust domestic demand supported by record-high employment, rising real wages and low borrowing costs while its exporters are benefiting from a global economic recovery.

The Ifo economic institute forecasts the German economy to grow by 2.6 percent in 2018, pointing to a broad upswing that is generating employment and buoyant tax revenues.

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