German factory orders rebound less than expected in May
By Michele Maatouk
Date: Monday 06 Jul 2020
(Sharecast News) - German factory orders bounced back in May, albeit less than expected, according to figures released by Destatis on Monday.
Orders rose 10.4% on the month following a revised 26.2% slump in April, coming in below expectations of a 15% jump.
On the year, orders slid 29.3% in May following a revised 36.9% drop the month before and versus expectations for a 28% decline.
Compared with February 2020, the month before coronavirus restrictions were imposed in Germany, new orders in May were 30.8% lower, Destatis said.
Domestic orders increased 12.3% and foreign orders rose 8.8% on the month in May. New orders from the eurozone were up 20.9%, while new orders from other countries increased 2.0% compared with April.
The manufacturers of intermediate goods saw new orders increase 0.4% compared with April, while the manufacturers of capital goods saw a 20.3% jump in the month. Consumer goods manufacturers saw a 4.7% increase.
Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics, said: "Overall, these data confirm the still-downbeat message from the surveys that new orders are still under pressure.
"Demand and output rebounded as the domestic economy - and the economies of Germany's major trading partners in Europe - reopened, but the level of both was still far off their previous highs mid-way through Q2.
"In the key auto-sector, for example, demand remained a whopping 47% below its February level in May. This compares to a 31% shortfall for manufacturing orders as a whole. Remember though that major parts of the European continent were still locked down through the beginning May, so we need to see the June data to get a clearer picture of how quick demand is recovering."
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