German factory orders rebounded in November mainly on the growth of overseas orders amid supply chain concerns.
EWG is down 0.12% premarket.
Factory orders increased by 3.7%, following the 5.8% drop in the previous month. The growth was attributed to the increase in overseas orders, while a drop was seen in domestic demand.
German auto sales plunged to the lowest level in at least three decades, dragged by the ongoing semiconductor shortages. Manufacturers are optimistic that the supply issues will ease this year but warned that supply will remain tight until June.
The rebound faces downward risks such as persistent supply-chain problems, inflationary concerns, the ongoing energy crunch, and the rise in COVID-19 cases. The government just recently reimposed stricter restrictions to prevent a new outbreak.
A recent survey indicated that there were “tentative signs” that constraints eased in December.