Factory orders in Germany tumble more than expected in July

By Tuba Sahin

ANKARA (AA) – Factory orders in Germany declined more than market forecasts in July, according to official data released on Tuesday.

New manufacturing orders dropped 1.1% month-on-month in July, following an upwardly revised 0.3% decline in June, German statistical office Destatis said.

The market estimate for the month was a 0.5% decrease.

New orders in the domestic sector slipped 4.5% and in the euro area by 6.4% compared with the previous month.

In contrast, total foreign orders were up by 1.3% in July, driven by those from countries outside the eurozone, which increased 6.5%.

Orders for capital goods were down by 0.2%, while intermediate goods recorded a 1.5% rise.

Orders for consumer goods plummeted 16.9%, mainly due to a 23.6% decline in the volume of new orders for pharmaceutical products, according to Destatis.

On an annual basis, the July figure for new manufacturing orders plunged by 13.6%.