Situation
- On a monthly basis orders grew by 2.90% ( -0.59 % drop in Feb’07)
- On a yearly basis orders grew by 10.21 % p.a ( 5.94% p.a growth in Feb’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
- The orders growth can be expected to range between 4.5 % p.a to 9.5 % p.a initially ( Mid ‘07 )
- Post this - growth looks like droping to a “0% ” after Mid ‘07 towards mid ‘08
Related links
- Europe - New Orders growth rate drops in Feb 2007
- USA - New Orders declines in Mar’07
- Japan - Dramatic fall in new orders in Mar’07 ( strongest fall since May ‘02 )