German factory orders surge in June
By Michele Maatouk
Date: Thursday 06 Aug 2020
(Sharecast News) - German factory orders surged in June although volumes were still much lower than before the coronavirus pandemic, according to provisional figures released by Destatis on Thursday.
Orders rose 27.9% on the month following a revised 10.4% increase in May, coming in ahead of expectations for a 10.1% jump.
On the year, orders fell 11.3% in June following a revised 29.3% slump the month before.
Compared with February 2020, the month before coronavirus restrictions were imposed, new orders in June were down 11.3%.
Domestic orders increased by 35.3% and foreign orders rose 22% on the month. New orders from the eurozone increased 22.3%, while new orders from other countries were up 21.7%.
The manufacturers of intermediate goods saw new orders rise 10.6% compared with May, while capital goods makers saw an increase of 45.7% and consumer goods manufacturers saw new orders tick up 1.1%.
Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics, said demand in German manufacturing improved substantially at the end of Q2, a positive headline following the relatively modest increase midway through the quarter, immediately after lockdowns were lifted.
"The jump in orders leaves new orders just over 10% below its pre-crisis level at the end of Q2, which makes sense to us. We suspect this will be reflected in tomorrow's report for June industrial production, which is now looking as if it will surprise to the upside. Overall, new orders plunged by 22.8% quarter-on-quarter in Q2, and we're looking for a rebound in Q3, at just under 25%."
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