Factory orders in Germany registered an increase of 1% last January in relation to the previous month, when they increased by 3.4%, thus exceeding the expectations of the market consensus and dispelling the fear that the ‘European locomotive’ go into recession this winter.

According to data published by the German Federal Statistical Office (Destatis), orders from German factories experienced a decline of 10.9% compared to January 2022.

Leaving large-scale orders out of the estimate, there was a 2.9% increase in orders from German factories in January.

Domestic and foreign orders also continued to show opposite trends, and while domestic orders fell 5.3% from the previous month, foreign orders increased 5.5%.

Specifically, new orders from the euro zone decreased by 2.9%, while orders from the rest of the world increased by 11.2%. The increase in orders from non-eurozone countries was mainly due to large-scale orders in the aircraft and spacecraft construction sector.

As with domestic and foreign orders, the main industrial groupings moved in opposite directions and while new orders in the capital goods sector increased 8.9% in January, orders for intermediate goods decreased 8. 9% compared to the previous month, and in the consumer goods sector they decreased by 5.5%.

Apart from the increase in the aircraft and spacecraft construction sector (138.5%), capital goods benefited from strong growth in orders for the manufacture of motor vehicle engines (6.8%).