Forex News – German new factory orders slump in January

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The euro weakened after a report showing Germany’s manufacturing orders fell in January, despite expectations for a slight increase. Germany is the euro zone’s largest economy, and any weak data will sway the single currency.

January’s drop 2.7 percent drop overshadowed December’s gains of 1.6 percent, dimming hopes for a positive month. The main contributing factor behind the monthly decline was a drop in foreign orders.

On an annual basis, orders dropped 4.9 percent from a year ago when adjusted for work days.

Despite the weak data, many believe that the German industrial sector is still robust, mainly driven by a healthy domestic economy and export diversification, and is unlikely to be hit by a recession.