Germany’s factory orders declined in April as the decrease in domestic demand offset the growth in foreign orders, data from Destatis revealed on Monday.
Manufacturing orders dropped 0.2 percent month-on-month in April, in contrast to the 3.9 percent increase seen in March and economists’ forecast of +1.0 percent.
Excluding major orders, real new orders in manufacturing were 1.5 percent higher than in the previous month.
Domestic orders decreased 4.3 percent, while foreign orders went up by 2.7 percent on the previous month. New orders from the euro area gained 0.7 percent, and new orders from other countries rose 3.8 percent.
Orders for intermediate goods dropped 1.0 percent, while that for capital goods gained 0.2 percent. Regarding consumer goods, new orders rose 1.4 percent.
On a yearly basis, new orders growth surged to 78.9 percent from 29.2 percent in the previous month.
Data showed that manufacturing turnover slid 2.6 percent in April from the prior month, when it was up 3.1 percent.
April industrial orders data point to a temporary halt in industry’s rebound, Carsten Brzeski, an ING economist said. It is only a delay not a derailment, Brzeski added.
Germany’s industrial production data is due on June 8. Economists forecast production growth to ease to 0.7 percent in April from 2.5 percent in March.
The material has been provided by InstaForex Company – www.instaforex.com