Data published by the Federal Statistical Office (Destatis) showed that in July, factory orders rose by 2.9% after increasing by 4.6% in June (revised from +3.9%). This was the second monthly increase in a row after a five-month decline. Economists had expected a 1.5% decrease. Meanwhile, over the last three months (through July), factory orders rose by 1.7% compared to the previous three months. When large-scale orders are excluded, new orders fell by 0.4% compared to June, but increased by 1% per annum.
Destatis said that the increase in factory orders in July was mainly due to the "manufacture of other transport equipment" sector (aircraft, ships, trains, military vehicles), where new orders were up 86.5% m/m due to several large-scale orders. Increases also recorded in the manufacture of electrical equipment (+18.6% m/m). However, new orders fell in the "manufacture of machinery and equipment" sector (-6.1% m/m).
As for sectors, new orders rose in the capital goods sector (+3.5% m/m) and the intermediate goods sector (+4.4% m/m), but fell in the consumer goods sector (-5.8% m/m).
Meanwhile, foreign orders increased by 5.1% m/m, while new orders from the euro area rose by 5.9% m/m. New orders from the rest of the world increased by 4.6% mom, while domestic orders remained unchanged.