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Decline In German Factory Orders Deepens In July
(RTTNews) - Germany's factory orders declined at a faster pace in July on weak domestic and euro area demand, official data revealed on Tuesday.
Factory orders declined 1.1 percent month-on-month in July, bigger than June's revised 0.3 percent decrease, Destatis reported. This was the biggest fall since April, when orders decreased 1.7 percent.
Orders have been falling since February. Economists had forecast a monthly fall of 0.5 percent.
Domestic orders logged a monthly decline of 4.5 percent, while factory orders gained 1.3 percent. A decline of 6.4 percent in orders from the euro area was offset by the 6.5 percent increase in non-euro area demand.
Excluding major orders, new orders dropped 0.8 percent from the previous month.
The producers of capital goods logged a decrease of 0.2 percent in July, while demand for intermediate goods grew 1.5 percent.
On the other hand, orders for consumer goods plunged 16.9 percent mainly due to a 23.6 percent decline in demand for pharmaceutical products.
On a yearly basis, factory orders logged a sharp fall of 13.6 percent after easing 9.0 percent in June.
Further, data showed that turnover in manufacturing decreased 1.8 percent month-on-month in July, reversing a 3.4 percent rise in June.
Shrinking order books add to current recession fears, ING economist Carsten Brzeski, said. With surging energy prices and fading new orders, the outlook for the German industry is anything but rosy, the economist added.
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