Industrial orders in Germany fell by a much bigger-than-expected 4.8 per cent in November compared to a month earlier, hit by falling orders from abroad, according to new data.
An increase in orders for October was also revised slightly downwards to five per cent from 5.2 per cent, according to the figures released by the Economy Ministry.
Due to the October increase, orders for November had been expected to fall but the figure exceeded the expectations of analysts surveyed by Dow Jones Newswires, who had predicted a fall of 1.7 per cent.
Orders from abroad slumped by 7.8 per cent in November while those from Germany fell by 1.1 per cent, the ministry said in a written statement.
“Even without taking into account big orders, the dynamic of demand is currently weak. In line with forecasts, that signifies limited development for industrial production during the winter months,” it said.
For the period of October to November compared to the two-month period of August-September, manufacturing orders rose by 0.2 per cent, the figures showed.
However Christian Schulz, analyst at Berenberg Bank, said that leading indicators suggested that German industrial output remained “fairly resilient”.
“However this export-dependent sector will eventually suffer from the weakness of important debt-crisis-hit trading partners and is likely to drag the German economy into contraction in Q1 2012,” he said.