Factory orders in Germany rose for the third straight month in June increasing by 7 percent month-over-month. The increase in June was above the market estimate of a decline of 2 percent. This was the steepest pace since June 2020.
New orders for mechanical engineering jumped 5.1 percent, and those for other vehicle construction soared 89.2 percent, mainly linked to the aerospace industry. However, orders for motor vehicles and their parts tumbled 7.3 percent. Orders for capital goods increased by 9.9 percent, while those for intermediate and consumer goods were up 2.0 percent and 7.7 percent, respectively. Excluding large-scale orders, new orders declined by 2.6 percent but foreign orders climbed by 13.5 percent.
Factory Orders in Germany are reported using monthly changes in the volume of new orders manufacturers receive. Factory Order figures in Germany can be very volatile and misleading because they are heavily affected by geopolitical events, temporary shocks in demand, and business deals which may only happen once.
Factory orders in Germany rose 6.4 percent month-over-month in May 2023, easily exceeding market estimates of 1.2 percent and following an upwardly revised 0.2 percent rise in April.
Factory orders in Germany unexpectedly dropped by 0.4 percent in April 2023, missing market estimates of a 3.0 percent rise and following an upwardly revised 10.9 percent fall in March. This was the second straight month of decline in industrial orders, dragged down by a fall in large-scale orders. New orders for miscellaneous vehicle construction, which includes the construction of ships, railed vehicles, aircraft, spacecraft, and army vehicles, plunged 34 percent and those for manufacture of machinery and equipment went down 6.2 percent. Excluding large-scale orders, new orders rose 1.4 percent. Also, capital goods orders were down 1.7 percent, and orders for consumer goods fell by 2.5 percent. The orders for motor vehicles and motor vehicle parts rose significantly by 2.4 percent and demand for intermediate goods increased by 2.3 percent. Foreign orders decreased by 1.8 percent.
German factory orders rise unexpectedly
