Germany's factory orders plunge most in 3 years

ANKARA

Germany's factory orders fell at the strongest pace in 39 months in July due to a very large order reported in the manufacture of air and spacecraft in the prior month, official data revealed on Wednesday.

New orders in German manufacturing plunged 11.7% month-on-month in July, the largest decline since April 2020, the Federal Statistical Office (Destatis) said.

The market forecast was a 4% monthly decline for July, shifting from an upwardly revised 7.6% hike in June.

Due to the large-scale order in manufacture of air and spacecraft in June, new orders in the “manufacture of other transport equipment” plummeted by 54.5% from a month earlier in July.

New orders also declined in the manufacture of computer, electronic and optical products (-23.6%), machinery (-8.7%), electrical equipment (-16.7%), and fabricated metal products (except machinery and equipment) (-14.2%).

By contrast, the manufacturers of motor vehicles, trailers and semi-trailers grew 2.7% from the previous month.

On an annual basis, new factory orders tumbled by a calendar-adjusted 10.5% compared to July.