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German Industry Orders Surge: Big Deals Mask Weakness
6 Aug
Summary
- Industrial orders rose 3.1% in June, exceeding expectations.
- This increase was largely due to significant large-scale orders.
- Excluding large orders, new orders actually decreased by 0.5%.
In June, German industrial orders experienced a significant increase of 3.1% compared to the previous month, on a seasonally and calendar adjusted basis. This figure exceeded the 0.3% rise anticipated by analysts. However, a closer examination reveals that this positive trend was substantially influenced by large-scale orders.
Excluding these major deals, new orders actually saw a slight decrease of 0.5% from the prior month. Furthermore, the statistics office revised May's provisional results downward. The initial reported 1.9% increase was amended to a more modest 0.3% rise, attributed to an adjusted calculation for price changes.
Looking at a less volatile three-month comparison, new orders from April to June were up 1.3% compared to the preceding three months. Yet, once again, when large orders were excluded, this figure remained unchanged, reinforcing the notion that underlying demand in German industry is still facing considerable headwinds.
