Data published by the Federal Statistical Office (Destatis) showed that in June, factory orders increased by 3.9%, offsetting the May drop (-1.7%, revised from -1.6%). This was the first increase in the last six months and the strongest increase since December 2023. Economists had expected a 0.8% increase. Meanwhile, over the last three months (through June), factory orders decreased by 1.4% compared to the previous three months. When large-scale orders are excluded, new orders increased by 3.3% compared to May.
Destatis said that in the automotive industry, new orders rose by 9.3% m/m. Increases also recorded in the “manufacture of fabricated metal products” sector (+9.8%) and the "manufacture of other transport equipment" sector (aircraft, ships, trains; +11.7%). By contrast, the decline in new orders in the “manufacture of computer, electronic and optical products” sector (-7.9%) had a negative impact on the overall result.
As for sectors, new orders rose in the capital goods sector (+9.2% m/m), but fell in the intermediate goods sector (-1.5% m/m) and the consumer goods sector (-7.1% m/m).
Meanwhile, foreign orders increased by 0.4% m/m, while new orders from the non-euro area increased by 0.9% m/m. New orders from the euro area fell 0.3% m/m. Domestic orders rose by 9.1% m/m.