German factory orders fall more than expected in August
By Michele Maatouk
Date: Monday 07 Oct 2019
(Sharecast News) - German factory orders fell more than expected in August, with domestic orders proving to be the biggest drag, according to figures released by Destatis on Monday.
Orders declined 0.6% on the month in August, which was an improvement on the revised 2.1% drop seen the month before but steeper than the 0.3% dip expected.
On the year, factory orders slumped 6.7% compared to a downwardly-revised 5% decline in August and expectations of a 6.4% fall.
Domestic orders fell 2.6%, while foreign orders were up 0.9% in August compared to the previous month. New orders from the eurozone were up 1.5%, with new orders from other countries 0.4% higher compared to July 2019.
The manufacturers of intermediate goods saw new orders rise 1.1% compared with July, while the manufacturers of capital goods saw a 1.6% decline. For consumer goods, new orders were down 0.9%.
Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics, said the figures were "not pretty".
"We had hoped for a better month-to-month print given favourable base effects from the plunge at the start of Q3, though the upward revisions add a slight positive spin to the story. New orders in intermediate goods rebounded slightly on the month, but sustained weakness in orders for capital and consumer goods condemned the headline to a further slide.
"A 2.6% month-to-month plunge in domestic orders did the main damage- especially in consumer goods- offsetting a 0.9% increase in export orders. Especially consumer goods orders to other EZ economies performed strongly, jumping by 14.2%. The uptick in export orders is encouraging, but the main story is unchanged; German manufacturing remained in recession in Q3."
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