German factory orders rise more than expected in December

German factory orders rose much more than expected in December, with domestic demand driving growth, according to figures released on Friday by Destatis.

Orders were up 2.8% on the month following a revised 3.6% jump in November, beating expectations for a 0.5% increase.

On the year, factory orders rose 5.5% in December following a revised 2.3% increase the month before and versus expectations of 2% growth.

Compared to February 2020, a month before Covid-related restrictions kicked in, new orders were 9.8% higher in seasonally and calendar-adjusted terms.

Domestic orders rose 11.7% on the month in December, but foreign orders fell 3%. New orders from the eurozone declined 4.2%, while orders from other countries were 2.3% lower.

Producers of intermediate goods saw new orders rise 4.1% on the month in December, while capital goods makers recorded a 1.8% jump and consumer goods manufacturers saw orders rise 5.3%.