Germany: Sharp drop in factory orders - TDS

Analysts at TD Securities note that the German factory orders fell a sharp 4.2% m/m in February, largely on the back of weak foreign orders (-6%), likely reflecting weaker demand from Asia due to Chinese New Year.

Key Quotes

“The key manufacturing sales series fared somewhat better, falling 1.1% m/m, but suggests downside risks to tomorrow's German IP data, though we note a considerable breakdown in the relationship between the series in recent months.”

“On a year-on-year basis, manufacturing orders rose into positive territory for the first time since Jul-18. Looking forward, indicators out of Asia for March point to a strong recovery in trade activity, and suggests a rebound is still in the cards for March.”