German factory orders rise in June, but May data revised sharply lower

(Sharecast News) - German industrial orders rose in June driven by a surge in large scale orders and helped by a downwards revision to May's readout. New orders increased 3.1% month‑on‑month, seasonally and calendar‑adjusted, according to provisional figures from the Federal Statistical Office.

That followed a revised 0.3% rise in May from April compared with an initial reading of 1.9% with the adjustment attributed to price changes.

The headline gain was driven almost entirely by a surge in large‑scale orders, particularly in machinery and equipment and in computer, electronic and optical products. Orders in those sectors jumped 12.7% and 22.7% respectively, with several firms reporting major contracts.

Excluding these large orders, however, underlying demand actually fell 0.5%.

The three‑month trend was slightly more encouraging: orders between April and June were 1.3% higher than in the previous three‑month period, though flat when large‑scale orders were excluded.

Reporting by Frank Prenesti for Sharecast.com