05.08.202110:18:00UTC+00Germany Factory Orders Growth At 10-Month High

Germany factory orders grew at the fastest pace in nearly a year in June underpinned by strong domestic demand, data from Destatis revealed on Thursday.

Factory orders advanced by more-than-expected 4.1 percent month-on-month in June, reversing a revised 3.2 percent fall in May. This was the biggest growth since August, when orders were up 4.5 percent. Orders were forecast to climb 1.9 percent.

Excluding major orders, new orders in manufacturing were 1.7 percent higher than in the previous month.

Domestic orders advanced 9.6 percent, while foreign orders went up only 0.4 percent in June. New orders from the euro area moved up 1.3 percent and that from other countries fell 0.2 percent compared with May.

Manufacturers of intermediate goods saw new orders increase by 1.4 percent compared with May. Demand for capital goods climbed 6.8 percent. On the other hand, new orders for consumer goods fell 1.1 percent.

Incoming orders are continuing their upward trend that has existed since the beginning of the year after a brief interruption in May, the economy ministry said.

On a yearly basis, manufacturing orders advanced sharply by 26.2 percent, but down from 54.9 percent in May.

Data showed that manufacturing turnover dropped 1.4 percent on month in June, following a 0.4 percent fall in May.

Destatis is slated to issue industrial production data for June on August 6. Economists forecast output to grow 0.5 percent on month, reversing a 0.3 percent fall in May.