German industrial orders post strongest drop in seven months

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German industrial orders post strongest drop in seven months
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German industrial orders posted their biggest drop in seven months in January, a...

BERLIN - German industrial orders posted their biggest drop in seven months in January, a further sign that Europe’s largest economy had a subdued start to 2019, although December’s figure was revised to show a rise rather than the previously reported fall.

The figure for December was revised to an increase of 0.9 percent rather than the drop of 1.6 percent announced a month ago. The Federal Statistics Office put the revision down to large orders for December being reported late. Bookings for intermediate, capital and consumer goods all fell in January, a breakdown of data showed. Both foreign and domestic orders declined.

“There’s no end to the weak phase in German industry in sight,” said Commerzbank economist Ralph Solveen. Record high employment, rising wages and low interest rates have been encouraging consumers to splash their cash and a GfK survey has shown morale among shoppers held steady heading into March.

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