Prior -11.1%The February reading marks a minor bounce after the sharp drop in January, which at the time owed to a steep drop in the orders for the manufacture of metal products (-39.4%). That of course follows up from the sharp jump in December (+29.7%) before that. So, it is essentially some normalisation in the data after months of volatile orders having an effect.If you exclude large orders from the latest data, German factory orders were actually 3.5% in February compared to January. In the less volatile three-month comparison though, new orders in the three months to February were still down 0.8% than in the preceeding three months.Looking at the details, new orders in the automotive industry helped to underpin the bounce in February with 3.8% growth alongside a notable jump in the textile industry (+45.2%). That is however offset by a decline in other vehicle manufacturing (aircraft, ships, trains, military vehicles), which saw a 25.9% drop.Foreign orders were the ones contributing the most, seen up 4.7% on the month. Meanwhile, domestic orders were seen down 4.4% on the month.
This article was written by Justin Low at investinglive.com.
💡 DMK Insight
The recent bounce in manufacturing orders, up 11.1% in February, signals potential stabilization in the sector, but traders should remain cautious. This uptick follows a dramatic 39.4% drop in January, which was largely driven by a slump in metal product orders. Such volatility can indicate underlying instability, and while a rebound is welcome, it’s essential to consider the broader economic context. If this trend continues, it could influence related markets, particularly commodities like metals, which are sensitive to manufacturing demand. Traders should keep an eye on key resistance levels in metal prices, as a sustained recovery in orders could lead to upward pressure on these assets. However, it’s worth noting that the sharp fluctuations in previous months—like the 29.7% spike in December—suggest that the market is reacting to short-term factors rather than a solid trend. Watch for upcoming economic indicators and manufacturing data releases that could provide further clarity on this situation.
📮 Takeaway
Monitor February’s manufacturing orders closely; a sustained trend could impact metal prices and related markets significantly.






