Feb 6, 2023
German Factory Orders Rise More Than Hoped Amid Growing Optimism
(Bloomberg) -- German factory orders grew more than anticipated in December in the latest sign that Europe’s largest economy will get through the winter without seeing a slump.
Demand increased 3.2% from the previous month, more than the 2% rise analysts had predicted in a Bloomberg survey. The jump was due to large orders, without which there would have been a 0.6% decline, the statistics office said on Monday.
German output shrank 0.2% in the final quarter of last year, making a recession on the back of higher energy bills difficult to avoid. Quickly rising borrowing costs that have yet to fully filter through are adding to economic headwinds.
Several indicators are still pointing to growing confidence after mild winter weather and well-filled gas storage facilities all but eliminated the risk of shortages. Wholesale prices have fallen from record highs, feeding optimism that inflation may ease sooner than previously expected.
Business surveys by S&P Global pointed to an improving situation at the beginning of the year, as supply-chain bottlenecks eased and cost pressures cooled.
While Volkswagen AG expects China’s reopening to bolster demand, auto supplier Robert Bosch GmbH sees global vehicle production remaining below pre-pandemic levels this year because of remaining shortages of some semiconductors and a slowing economy.
--With assistance from Joel Rinneby and Kristian Siedenburg.
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