German factory orders fell in November, a reminder that the country’s manufacturers are still struggling — even as the economic backdrop improves.
Demand declined 5.3% from the previous month, more than the 0.5% that analysts had predicted in a Bloomberg survey. The slump was driven by a drop in foreign orders, especially from the eurozone, the German statistics office said Friday. Surveys of purchasing managers by S&P Global this week showed that Germany’s manufacturing downturn is easing, though the data continued to point to a contraction. Demand is still being weighed down by uncertainty and high levels of inventory among customers. While Germany is now expected to escape a deep winter slump, inflation remains a thorny issue.
The outlook is also clouded by the sudden reversal of Covid-19 restrictions in China — one of Germany’s top trading partners. Overall exports already fell 0.3% from the previous month in November, with those to China dropping 1.5%, data published on Thursday showed.
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