German Factory Orders Tumble by 10.7% in March

Bob Mason
Updated: May 5, 2023, 14:32 GMT+00:00

German factory orders took a hit in March, raising concerns over the German economic outlook. Motor vehicles and vehicle parts contributed to the slide.

German factory orders fall in March - FX Empire

In this article:

It is a busy day on the European economic calendar. Ahead of the European opening bell, German factory orders drew interest.

Germany’s manufacturing sector PMI numbers failed to impress on Tuesday, with the manufacturing sector continuing to contract across the euro area. Today’s numbers needed to impress to deliver a more optimistic outlook for the German economy.

However, German factory orders tumbled by 10.7% in March versus a forecasted 2.2% decline. In February, German factory orders jumped by 4.5%.

According to Destatis,

  • A 47.4% slump in orders for miscellaneous vehicles (ships, railed vehicles, aircraft, and army vehicles) weighed. In February, the sector recorded a 55.0% surge in orders.
  • Motor vehicles and motor vehicle part orders slid by 12.2%.
  • Orders for capital goods declined by 14.1%, with intermediate goods orders down 7.5%.
  • However, the consumer goods sector registered a 1.2% increase in orders.
  • Domestic orders fell by 6.8%, while orders from overseas slid by 13.3%.
  • Compared with March 2022, factory orders were down 11.0%.

The decline in factory orders was the most marked since the COVID-19-driven slump in 2020. While investors may discount the slide in orders for miscellaneous vehicles, the fall in orders for motor vehicles and motor vehicle parts will be of concern

EUR/USD Reaction to German Factory Orders

Ahead of the German factory orders, the EUR/USD fell to an early low of $1.10067 before rising to a pre-stat high of $1.10464.

However, in response to the factory order numbers, the EUR/USD fell from $1.10400 to a post-stat low of $1.10330.

This morning, the EUR/USD was up 0.21% to $1.10368.

EUR/USD responds to German factory order slide.
050523 EURUSD Hourly Chart

Up Next

French industrial production, German construction PMI, and euro area retail sales figures will be in focus. We expect the euro area retail sales figures to garner the most interest.

While the economic indicators will draw interest, investors should monitor ECB member commentary. ECB Executive Board member Frank Elderson is on the calendar to speak today. However, investors should monitor ECB member chatter with the media.

Looking ahead to the US session, it is a busy day on the US economic calendar. The US Jobs Report will be the main report of the day.

A pickup in wage growth and a jump in nonfarm payrolls would refuel bets on a June interest rate hike. However, a weak nonfarm payroll figure could weigh on riskier assets, with recessionary jitters gripping the markets.


Beyond the economic calendar, the banking sector, the US debt ceiling, and corporate earnings need consideration. Adidas releases its earnings results today.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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