Germany Factory Orders Sink 5.8% In August

Germany’s factory orders declined at a faster-than-expected pace in August, preliminary figures from data Destatis showed on Monday.

Incoming new orders contracted 5.8 percent on a monthly basis in August, reversing July’s upwardly revised 3.9 percent expansion. Orders were expected to fall 1.9 percent.

Further, this was the steepest decline since January, when orders had fallen 10.9 percent.

Excluding large orders, new orders dropped 3.4 percent from July.

New orders in the capital goods and intermediate goods sectors fell 8.6 percent and 2.2 percent, respectively. However, new orders in the consumer goods sector dropped only slightly by 0.9 percent from a month ago.

Data showed that orders from abroad outside the Eurozone grew by 3.4 percent. Meanwhile, orders from the Eurozone alone plunge by 10.5 percent. Overall, foreign orders slid 2.2 percent, and domestic orders were 10.9 percent lower.

On a yearly basis, new orders declined 3.9 percent, in contrast to the 4.6 percent increase in the prior month.

Manufacturing turnover rose 23.2 percent on month in August following a 2.5 percent fall in July. Annual turnover was down 3.1 percent.