BERLIN (Reuters) - The downward trend in German engineering companies' orders eased in December, as foreign customers helped offset weak domestic results amid ongoing uncertainty in Europe's largest economy, the VDMA association said on Friday.
December orders fell by 6% year on year, following a sharp 13% fall in November, said the VDMA.
Orders from abroad decreased by 3% in December and domestic orders by 13%, it added.
For 2023 overall, orders were down 12%, with domestic orders seeing a 11% decrease and foreign ones a 13% fall.
In the less volatile three-month period from October to December, orders fell by 9% year on year.
VDMA chief economist Ralph Wiechers said there were signs that foreign orders were bottoming out. "Domestic orders, on the other hand, are still on a downward course. It is therefore clearly too early to sound the all-clear," he added.
In December, the VDMA lowered its 2024 production outlook to 4% from 2%, pointing to fewer new orders as manufacturers burn through their backlog amid a stagnating global economy.
DECEMBER CHANGE
overall -6% y/y
of which German -13% y/y
foreign -3% y/y
OCT TO DEC -9% y/y
of which German -15% y/y
foreign -6% y/y