Situation
On a monthly basis : New orders decreased by -0.67 % in Feb’07 ( - 0.09 % decline in Jan’07)
On a yearly basis : New orders increased by 5.26 % p.a in Feb’07 (revised to 9.80% p.a in Jan’07)
Background
- Interest rates have been raised in Dec’06 towards 3.5% and in Mar’07 towards 3.75%.
- Members of the ECB have said that interest rates would again be be increased in Jun’07
- Orders have been declining since the interest rate hike in Dec’06
Conclusion 
(click on image for a better visual )
- New orders look like it can drop towards the 4.50% p.a growth area
- Orders look unlikely to cross the 7.50% p.a growth mark in the next month
- Orders look like they would range between a possible maximum of 9.50% p.a and more likely towards a 4.50% p.a initially , and then drop down towards the 0% mark towards end 2007 . This becomes even more possible if the ECB does hike the interest rates in Jun’07
Related Links
- Euro area - New orders grow in Jan’07 ( but is this sustainable ? )
- USA - New Orders continues declines in Feb’07 ( annual basis)
- Japan - Orders grow at a slower pace in Feb’07