German factory orders dropped back into negative territory after having climbed to 1.50% in November. According to the German Federal Ministry for Economic Affairs and Energy, factory orders reportedly declined by -0.70% during December, missing estimates of -0.50% contraction. Euro Area orders slid by -6.90% while orders outside the Euro Area climbed by 5.50%, likely benefited by the weaker Euro. Intermediate goods dropped by -2.00% alongside domestic orders which shrank by -2.50% over the same period. German companies are not as fearful about the outlook as evidenced by the combination of recent statistics and low unemployment that will hopefully reflect a spur in demand. Worries arise from Germany’s fourth biggest trading partner, China, amid concerns that tapering GDP growth over the current year may have consequences for the Germany economy.