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German Machine Orders Dropped in January on Weak Domestic Demand

German plant and machinery orders declined in January on weak domestic demand, signaling that the economic recovery will be bumpy.

Orders, adjusted for inflation, fell 2 percent from a year earlier after increasing an annual 4 percent in December, the VDMA machine-makers’ association said in Frankfurt today. Domestic orders dropped 7 percent, while foreign demand rose 1 percent. Orders were unchanged in the three months through January, it said.

German production of plant and machinery will increase 2 percent this year, VDMA forecast on Dec. 13.

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