German factory orders unexpectedly drop in February

German factory orders unexpectedly fell in February, according to data from the Bundesbank.

Orders dropped 1.2% on the month, marking their lowest reading in six months and missing economists’ expectations for a 0.3% increase.

Still, the January reading was revised up to show a 0.5% rise from a 0.1% fall.

On the year, factory orders were up 0.5%, falling short of expectations of a 2.2% increase.

Pantheon Macroeconomics said the upward revision to last month’s data compensates slightly for the poor headline, but this is a weak report.

“The main hit came from a 7.3% month-to-month plunge in consumer goods orders, almost erasing the surge in the previous two months. Capital goods orders fell 2.1% month-to-month, while intermediate goods orders increased 1.7%.

“New orders are very volatile on a monthly basis, and we expect a rebound next month, but manufacturing in Germany remains weak overall,” Pantheon said.