Factory orders in Germany continue to drop in August

By Gokhan Ergocun

ISTANBUL (AA) - Factory orders in Germany posted a decline of 4.2% in August on a yearly basis, the country's statistical department said on Friday.

Orders were also down by 10.1% year-on-year in July, Destatis recalled.

Meanwhile, orders increased by 3.9% in August on a monthly basis, after dropping by 11.3% month-on-month in July.

"Much of the sharp increase in new orders in August 2023 was due to the performance of the 'manufacture of computer, electronic and optical products' sector (+37.9%)," Destatis said, adding:

"The manufacture of electronic components was largely responsible for the increase, with order growth recorded for both domestic and foreign orders."

It noted increases in new orders observed for the manufacture of electrical equipment with 8.7% and in the pharmaceutical industry with 4% also had a positive impact on overall performance.

"Declining orders in the automotive industry (-0.7%), by contrast, had a slightly negative effect," it added.