June Sees a Slight Decline in German Factory Orders

According to the Federal Statistical Office Destatis, Germany experienced a 1% decrease in seasonally and price-adjusted new factory orders in June compared to the previous month. However, on an annual basis, there was a modest increase of 0.8% in new orders.

Sector-Specific Trends Highlight Varied Performance

The report highlighted significant declines in certain sectors, with other transport equipment (including aircraft, ships, trains, and military vehicles) seeing a 23.1% drop, the automotive industry facing a 7.6% decrease, and the manufacture of metal products down by 12.9%. In contrast, the manufacture of electrical equipment enjoyed a substantial 23.5% increase in new orders compared to May.

Domestic and Foreign Orders Show Divergent Paths

Foreign orders fell by 3.5%, while domestic orders saw a 2.2% rise in June. The month also recorded a 0.5% increase in new orders for consumer goods and a 6.1% rise for intermediate goods, but a 5.3% slip for capital goods.