German factory orders dropped more than anticipated in December. It was not only the export market that grew slow and only showed insignificant return, the local orders had also been weak with minor demand at home.

According to the Economy Ministry on Friday as stated in ABC News, after strong revenues in the previous two months, experts had estimated that there would 0.5 percent orders drop at the end of last year. However, it turned out to be worse with 0.7 percent down, more than the forecast.  

The local demand from inside Germany dropped for 2.5 percent, as well as the orders from the other countries in Europe that were down 6.9 percent. Yet, there was a 5.5 percent increase in the orders coming from countries outside the euro region.

Last year, the German economy, which is the largest in Europe, grew by 1.7 percent. While this year, the government has just decreased its growth estimation to 1.7 percent from 1.8 percent in the midst of worries over the global slowdown and political pressures.

RTT News mentioned that the December orders drop was the first one during three months. In December, there was a 0.5 percent drop of capital goods orders, while the intermediate goods demand fell for 2 percent. But the consumer goods gained better with 4.3 percent growth in that month. On an annual premise, new orders decreased 2.7 percent in December, more than the 1.4 percent drop estimation.

Carsten Brzeski, a financial expert at ING-DiBa, said that While the business had possessed the capacity to tolerate the Chinese economy slowdown, the lower growth of potential markets, the euro crisis and geopolitical conditions, it now appears as though "extremely low oil prices and the slowdown of the US economy are simply two risks too much."

Jens Kramer, a market analyst at NordLB in Hanover, as stated in Bloomberg said, "We had extremely solid figures in November, and this arrangement has a tendency to have an opposite development after you had solid information in the previous month. Residential interest in the German economy is exceptionally steady, and we have expanding limit use, so ostensibly everything is ideal for a pickup in venture."

Information from the Federal Labor Agency in Nuremberg suggested that unemployment in the country slid to 6.2 percent in December, the least level since reunification and will reinforce household spending. However, German companies are worried about the declining confidence in the abroad market for a second month.

The Chinese sluggish economy, which is Germany's fourth-biggest trading partner, has caused chaos in the global market and influenced the worldwide confidence for a stronger economy. The December dropped orders, which was worse than expected, has shown the weaker ability from the local buyers as well as the slow growth of the overseas market.