(MENAFN) According to official data released on Thursday by Germany's federal statistical bureau Destatis, factory orders in January experienced a significant decline of 11.3 percent compared to December 2023.

Similarly, on a year-on-year basis, factory orders dropped by 6 percent in January. These figures indicate a notable downturn in manufacturing activity within Germany during the specified period, reflecting potential challenges or shifts in both domestic and international demand for German goods.

"The sharp decline in January 2024 is attributable to the high volume of large-scale orders in December 2023," it stated.

Additionally, the federal statistical bureau Destatis noted that in January 2024, the volume of large-scale orders returned to an average level. This observation suggests a potential stabilization or recovery in the demand for large-scale orders within the manufacturing sector following the notable decline reported earlier.

"This base effect is particularly pronounced in the manufacture of electrical equipment (-33.2 percent), other transport equipment (in particular, aircraft, ships, trains; -27.3 percent) and fabricated metal products (-14.5 percent)," it declared.

During January 2024, there was a decline in new orders compared to the previous month across all three major groups in the manufacturing sector. Specifically, new orders decreased in the capital goods sector by 13.1 percent, in the intermediate goods sector by 9.3 percent, and in the consumer goods sector by 5.7 percent.

"Foreign orders fell by 11.4 percent, with orders from the euro area declining by 25.7 percent. By contrast, orders from outside the euro area rose by 1.6 percent. Domestic orders declined by 11.2 percent," Destatis noted.

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