Market Analysis

In April, German industrial orders unexpectedly declined for the fourth consecutive month, primarily due to a sharp reduction in large-scale orders compared to the previous month, as reported by the federal statistics office on Thursday.

Orders fell by 0.2% month-on-month after seasonal and calendar adjustments, contrary to expectations among economists polled by Reuters who anticipated a 0.5% increase.

"The negative trend observed since the beginning of the year continues, although at a slower pace," noted the economy ministry.

Excluding the volatile large-scale orders, April saw a 2.9% increase in orders compared to the previous month.

Commerzbank economist Ralph Solveen commented optimistically, saying, "Together with more positive sentiment indicators, this suggests that the prolonged downward trend of over two years may be nearing its end."

The ministry also pointed to improved sentiment indicators, which are expected to contribute to a reversal in the trend of incoming orders.

Paraphrasing text from "Reuters" all rights reserved by the original author.