German recovery falters after weak July industrial orders
By Frank Prenesti
Date: Friday 04 Sep 2020
(Sharecast News) - German industrial goods orders rose by a smaller-than-expected 2.8% in July, according to official data on Friday, in a further indication that the post-coronavirus recovery was faltering.
The Federal Statistical Office said rapid growth in intermediate goods was weighed down by slower expansion in capital and consumer goods.
Economists had been expecting a 5% rise in July after a recent improvement in purchasing managers' surveys for Germany's manufacturing sector and a rise in the country's daily truck toll mileage index.
Record June figures were revised up to show an increase of 28.8% from 27.9% previously reported.
Order intake was 8.2% lower than in February, before lockdown measures were imposed to slow the spread of the coronavirus. Domestic orders fell by 10.2% on the month in July, while orders from abroad were up 14.4%.
Automotive new orders rose 8.5%, but were still 2.4% below pre-pandemic levels. Price-adjusted manufacturing turnover rose 5.2% month on month.
Figures released on Wednesday showed an unexpected fall in July German retail sales in another sign that consumers were wary of spending in a recession and dampening hopes of a spending-led recovery.
Berlin on Tuesday revised upwards its 2020 forecast for the economy to shrink by 5.8% this year from a previous estimate of a 6.3% contraction.
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