German June Manufacturing Orders Dropped 2.5% From May

ByBridgeNews The volume of German manufacturing orders slumped below analysts expectations by 2.5% in June compared with May, following a 4.6% jump in the previous month on the back of big-ticket orders, according to provisional data released Aug. 6 by the Finance Ministry. While domestic orders plunged 4.5% from May, foreign orders -- helped by continued big-ticket contracts -- declined by a relatively slight 0.4% on the month in June, it said. Manufacturing orders in western Germany fell 2.2% in June on the month, while in eastern Germany orders dropped 8.9%, the ministry said. In the two-month comparison, which smooths out some of the monthly fluctuations, manufacturing orders were 2.2% higher than in March-April, on the back of strong May data. The individual sectors showed similar developments in orders in May-June against March-April, with both pre-production and capital goods showing 2.3% rises and durable and non-durable goods increasing 1.8%. Capital goods sector registered a strong discrepancy between weak domestic demand, with orders plunging 8.3% in the two-month comparison, and strong foreign orders, jumping 14.1% on the back of big-ticket contracts, the ministry said. A similar situation is seen for total manufacturing orders, as domestic orders fell 2.1% in May-June from March-April, while foreign contracts rose 8.0% in the same period. In the annual comparison, June manufacturing orders were 2.5% lower than in June 2000, while comparing May-June orders with the same months last year shows a fall of 2.9%. In the first half year, manufacturing orders rose 0.9% from the same period last year, the ministry said.