FOREX TradingCharts.com

Financial News: German Factory Orders Decline Most In 5 Months

German Factory Orders Decline Most In 5 Months

09/05/2019 - 08:33:00 (RTTNews)

(RTTNews) - Germany's factory orders decreased the most in five months in July, largely due to a marked contraction in foreign demand, data from Destatis revealed on Thursday.

Factory orders decreased by a more-than-expected 2.7 percent over the previous month in July, offsetting a revised increase of 2.7 percent seen in June. This was the biggest drop since February.

Economists had forecast orders to drop 1.4 percent after June's initially estimated growth of 2.5 percent.

Domestic orders dropped 0.5 percent and foreign orders decreased 4.2 percent in July. New orders from the euro area gained 0.3 percent, while demand from other countries fell 6.7 percent.

On a yearly basis, overall manufacturing new orders decreased 5.6 percent, faster than the 3.5 percent fall logged in June. Orders were expected to decline 4.2 percent.

Destatis is scheduled to release industrial production data on September 6. Production is forecast to grow marginally by 0.3 percent on the month in July, in contrast to a 1.5 percent fall in June.

Data showed that manufacturing turnover dropped 0.9 percent in July from the previous month after a decrease of 0.1 percent in June.

The economy ministry said in the light of the ongoing international trade conflicts and the restrained business expectations in the manufacturing sector, there are still no signs of a fundamental improvement in the industrial economy in the coming months.

What initially only looked like an order book deflation at high levels has become an industrial slump, Carsten Brzeski, an ING economist, said.

This downward trend is not only driven by weaker foreign demand on the back of trade conflicts and increased uncertainty, the economist noted. Since the start of the year, domestic orders have actually dropped more than foreign orders, suggesting that global woes have reached the domestic economy.

The biggest euro area economy is on the verge of a recession as it contracted 0.1 percent in the second quarter due to weak foreign demand, and there are signs that the shrinking continued into the third quarter, strengthening calls for stimulus.

According to Purchasing Managers' survey, Germany's service sector growth improved in August from a six-month low, which was counteracted by a sharp contraction in manufacturing.

The construction sector activity fell at the fastest rate in over five years in August, led by civil engineering, as order books continued to fall and expectations deteriorated, IHS Markit data showed Thursday.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


RBA Minutes On Tap For Tuesday (01 hr(s), 13 min(s), 05 sec(s) ago)
(RTTNews) - The Reserve Bank of Australia will release the minutes from its September 3 meeting on ...Full Story»

Czech Producer Price Inflation Steady (08 hr(s), 44 min(s), 05 sec(s) ago)
(RTTNews) - Czech producer price inflation remained stable in August, figures from the Czech Stati ...Full Story»

Croatia Inflation Slows In August (08 hr(s), 46 min(s), 05 sec(s) ago)
(RTTNews) - Croatia's consumer price inflation slowed in August after rising in the previous m ...Full Story»

Ireland Trade Surplus Rises In July (08 hr(s), 50 min(s), 05 sec(s) ago)
(RTTNews) - Ireland's trade surplus increased in July, amid a rise in exports and imports, fig ...Full Story»

Italy Inflation Steady In August (08 hr(s), 56 min(s), 05 sec(s) ago)
(RTTNews) - Italy's consumer price inflation remained stable in August, final data from the st ...Full Story»

Turkey Retail Sales, Jobless Rate Fall (09 hr(s), 02 min(s), 05 sec(s) ago)
(RTTNews) - Turkey retail sales declined at the fastest rate in three months in July and the unemp ...Full Story»

New York Manufacturing Activity Little Changed In September (09 hr(s), 39 min(s), 05 sec(s) ago)
(RTTNews) - New York-area manufacturing activity was little changed in the month of September, acc ...Full Story»

India Wholesale Price Inflation Steady In August (10 hr(s), 19 min(s), 05 sec(s) ago)
(RTTNews) - India's wholesale price inflation was stable in August, data from the Ministry of ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

RBA Minutes On Tap For Tuesday

09/16/2019 - 18:00 PM (RTTNews)
(RTTNews) - The Reserve Bank of Australia will release the minutes from its September 3 meeting on ...Full Story>>

Czech Producer Price Inflation Steady

09/16/2019 - 10:29 AM (RTTNews)
(RTTNews) - Czech producer price inflation remained stable in August, figures from the Czech Stati ...Full Story>>

Croatia Inflation Slows In August

09/16/2019 - 10:27 AM (RTTNews)
(RTTNews) - Croatia's consumer price inflation slowed in August after rising in the previous m ...Full Story>>

Ireland Trade Surplus Rises In July

09/16/2019 - 10:23 AM (RTTNews)
(RTTNews) - Ireland's trade surplus increased in July, amid a rise in exports and imports, fig ...Full Story>>

Italy Inflation Steady In August

09/16/2019 - 10:17 AM (RTTNews)
(RTTNews) - Italy's consumer price inflation remained stable in August, final data from the st ...Full Story>>
Copyright © 2019. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.