Germany: Downside drag for manufacturing unwinding rapidly - TDS

Analysts at TD Securities point out that the German factory orders data for December disappointed on the headlines as it fell -1.6% m/m vs market expectations of 0.3%.

Key Quotes

“The underlying details paint a much rosier picture for tomorrow's IP data, suggesting a roughly 2.5% m/m gain in manufacturing IP driven by consumer durables and capital goods. This suggests that the downside drag from some temporary factors are unwinding rapidly.”