German factory orders rise 2.5pc in July on transport‑equipment surge

(Sharecast News) - German factory orders rose 2.5% month‑on‑month in July, according to the Federal Statistical Office, marking a third consecutive increase and comfortably beating expectations. Destatis highlighted that the gain was driven almost entirely by a surge in large transport‑equipment contracts as orders for ships, rail rolling stock and aircraft jumped 126.4% on the month, offsetting weakness elsewhere in the manufacturing sector and helping headline demand outperform the 0.3% rise expected.

Stripping out major contracts, however, underlying momentum softened, with new orders down 1.4% from June as automotive bookings fell 12.5% and consumer‑goods demand slipped 4.8%, while foreign orders declined 2.1% amid a sharp drop in demand from non‑euro area markets. Domestic orders, by contrast, rose 9.1%, providing the main source of support outside the transport‑equipment spike.

The three‑month comparison offered a steadier view of activity, with orders from May to July up 2.9% on the prior three‑month period, though they were 2.2% lower when excluding large‑scale contracts.

June's increase was also upwardly revised to 3.7%, reflecting stronger‑than‑initially‑reported demand heading into the summer.







Reporting by Iain Gilbert at Sharecast.com