GERMAN DATA: Pullback From German Industry In January

German data on industry for January suggests a pullback in previously strong manufacturing orders towards the beginning of this year, while these previous strong orders are also not filtering through to production yet. Factory orders highlights: * "When large-scale orders are excluded, new orders were 0.4% lower than in the previous month. These figures illustrate the high level of December 2025 when new orders reached the highest value since February 2022 mainly due to large-scale orders. The less volatile three-month on three-month comparison showed that new orders in the period from November 2025 to January 2026 were 7.4% higher than in the previous three months; when large-scale orders are excluded, new orders increased by 1.5%." * On M/M drivers: "Following the very high volume of large-scale orders in December 2025, new orders were back to normal in several branches of manufacturing in January 2026. This was particularly reflected by new orders in the manufacture of fabricated metal products (except machinery and equipment), which decreased by 39.4% month on month after seasonal and calendar adjustment. In December 2025, new orders rose by 29.7% in this sector compared with the previous month. The declines witnessed in the manufacture of machinery and equipment (-13.5%) and the manufacture of basic metals (-15.1%) are attributable to the smaller volume of large-scale orders registered in January 2026. By contrast, the increase in new orders in the automotive industry (+10.4%) and for the manufacture of other transport equipment (aircraft, ships, trains, military vehicles; +9.2%) had a positive impact on the overall result." Industrial production highlights: * "The less volatile three-month on three-month comparison showed that production was 0.9% higher in the period from November 2025 to January 2026 than in the previous three months. After revision of the provisional results, production decreased by 1.0% in December 2025 compared with November 2025 (provisional figure: -1.9%)." * On M/M drivers: "The month-on-month decrease registered in January 2026 is largely due to the lower production in the "manufacture of fabricated metal products, except machinery and equipment" sector (-12.4%). The drop in output witnessed in the pharmaceutical industry (-11.9%) and in the manufacture of computer, electronic and optical products (-6.8%) also negatively impacted the overall result. By contrast, the increase recorded in energy production (+10.3%) had a positive effect. The considerable growth observed in this sector may be attributable to the exceptionally low temperatures in January 2026. On the other hand, the high number of days of ice and frost may have had a negative effect on production in civil engineering (construction of roads, railways, bridges and tunnels, for example). Production in civil engineering dropped by 7.5% in January 2026, while production in construction increased by 2.9% overall."

MNI: GERMANY JAN IND PROD -0.5% M/M (-1.0% DEC, REV FROM -1.9%)

* MNI: GERMANY JAN IND PROD -0.5% M/M (-1.0% DEC, REV FROM -1.9%) * GERMANY JAN IND PROD -1.2% Y/Y (0.4% DEC, REV FROM -0.6%)

MNI: GERMANY JAN FACTORY ORDERS -11.1% M/M (6.4% DEC, REV FROM 7.8%)

* MNI: GERMANY JAN FACTORY ORDERS -11.1% M/M (6.4% DEC, REV FROM 7.8%) * GERMANY JAN FACTORY ORDERS 3.7% Y/Y (11.7% DEC, REV FROM 13.0%)

MNI: GERMANY JAN IND PROD -0.5% M/M, -1.2% Y/Y (VS -1.0% M/M, +0.4% Y/Y DEC)

* MNI: GERMANY JAN IND PROD -0.5% M/M, -1.2% Y/Y (VS -1.0% M/M, +0.4% Y/Y DEC)