- German Factory Orders plunged by 15.6% MoM in March.
- On a yearly basis, Germany’s Factory Orders arrived at -16.0% in March.
- EUR/USD shrugs off devastating German Factory data.
The German Factory Orders slumped in March, suggesting that the manufacturing sector in Europe’s largest economy is heading deeper into contraction.
Contracts for goods ‘Made in Germany’ arrived at -15.6% on the month vs. -10.0% expected and -1.2% last, the latest data published by the Federal Statistics Office showed on Wednesday.
On an annualized basis, Germany’s Industrial Orders plummeted 16.0% in the third month of 2020 vs. +1.5% previous.
About German Factory Orders
The Factory orders released by the Deutsche Bundesbank is an indicator that includes shipments, inventories, and new and unfilled orders. An increase in the factory order total may indicate an expansion in the German economy and could be an inflationary factor. It is worth noting that the German Factory barely influences, either positively or negatively, the total Eurozone GDP. A high reading is positive (or bullish) for the EUR, while a low reading is negative.
The shared currency showed little reaction to the awful German Factory Orders data, with the EUR/USD pair holding the lower ground around 1.0835 region amid ECB challenges and broad dollar strength.