News
European Economics · German Economy · Hungarian Inflation · UK Construction
German factory orders rose 0.9% in February after an 11.1% January slump, while Hungary's March annual inflation accelerated to 1.8%, below forecasts, and UK construction activity contracted for the fifteenth consecutive month, according to respective statistical agencies.
The 0.9% February increase in German factory orders, reported by Destatis, followed a significant 11.1% decline in January, which was largely due to a fall in large-scale orders exceeding 50 million euros. February's growth fell slightly short of the 1.0% consensus forecast by Wall Street Journal economists, reflecting conditions prior to the energy price shock from the Iran war.
Hungary's annual inflation rate of 1.8% in March, reported by the Central Statistical Office (KSH), was an acceleration from 1.4% in February but remained below the 2.2% consensus forecast and 2.1% expectations, with core inflation decreasing to 1.9% from 2.1%. S&P Global reported that UK construction output declined for the 15th straight month in March, with the Purchasing Managers’ Index at 45.6, remaining below the 50.0 growth threshold.
Residential construction was the weakest segment at 38.2, and new orders decreased at the fastest pace in four months. Input cost inflation accelerated to its highest level since November 2022, with companies citing the Middle East war's impact on fuel, transportation, and raw material prices, leading to business optimism falling to a three-month low.
European Economies Diverge: German Orders Rebound, UK Construction Slumps(current)
