The German Factory Orders plunged more than expected in August, signaling that the recovery in the manufacturing sector of Europe’s economic powerhouse has lost pace.
Source: Trading Economics
DAX down -2.07%, EUR USD down -0.41%
Contracts for goods ‘Made in Germany’ reached at -7.7% on the month vs. -2.1% targeted and 4.9% last.
Orders for motor vehicles and parts dropped by 12%, and metal production and processing dropped by 9.6%.
Domestic orders fell by 5.2%, and foreign orders fell by 9.5%. Meanwhile, the factory orders were 8.5% higher compared to February 2020, the period before the start of the COVID-19.
On an annualized basis, Germany’s Industrial Orders increased by 11.7% in the latest reported month vs. 26.1% previous and expected growth of 33.7%. The figure outpaced expectations by a huge margin.