German factory orders declined no less than 2.8% m/m in March vs. +0.3% expected with February revised up a bit to +0.9% from +0.6%. This implies an annual change of 1.5% vs. 6.5% prior.
The decline in orders was driven by consumer goods (-5.3% m/m) and capital goods (-3.6%) while intermediate goods fared less poorly at -1.2%. The industrial production report will be released tomorrow.
French industrial production declined 0.7% m/m in March vs. +0.3% expected. Manufacturing also dropped 0.7% vs. +0.1% m/m expected while mining plummeted 7% and electricity and gas fell 0.6%.
Overall, a couple of weak reports, which do not confirm the pictures painted of the two economies by PMIs. Germany's manufacturing PMI stood at 53.7 in March while France's was 52.1.