German Factory Orders Tumble by 10.7% in March
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.

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