Did German Factory Orders Jump Due to Coronavirus in China? - Forex News by FX Leaders
Great month in January for factory orders

Did German Factory Orders Jump Due to Coronavirus in China?

Posted Friday, March 6, 2020 by
Skerdian Meta • 1 min read

The Eurozone economy has been pretty weak for about two years now. Manufacturing and industrial sectors have been hit the hardest, especially in Germany, where factory orders have been negative for a long time. But, today’s factory orders report which was for January came in pretty strong. Below is the report:

  • Germany January factory orders +5.5% vs +1.3% m/m expected
  • January was -2.1%
  • Factory orders -1.4% vs -5.2% y/y expected
  • Prior -8.7%

This is a major jump in factory orders to start the year, but the VDMA did preempt this a little yesterday as machine orders rose for the first time since 2018 on a yearly basis. After seeing factory orders slump for more than a year, the question that arises now is whether orders jumped due to the coronavirus outbreak in China.

The virus started spreading early in December, but it only turned into a widespread pandemic in Hubei in January. I don’t exactly recall when the shutdown took place in Wuhan, but I think January was the month. The world also got to know about the virus in China in January, so the logic tells you that the world started importing from China that month. This seems to have led to a shift in orders to Germany, from China. This is the reason factory orders have spiked higher that month in Germany.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of