German volatility in orders expected to continue

In February, a rebound in factory orders of 2.1% mom is expected, following the stronger than expected decline in January (-3.9% mom).

While foreign orders could see some weakening in the three-month quarterly average growth, domestic orders should recover again, responding to positive signs of a recovery in domestic demand. 

The continued strong impulses at the start of this year from real income growth and a strong labour market provide a favourable basis for increased investment and order flows.