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4 Sep 2015
Germany: Factory orders slumped more than expected - TDS
FXStreet (Delhi) – Ned Rumpeltin, European Head of Currency Strategy at TDS notes that the German factory orders posted a weaker than expected numbers as they slumped by 1.4% in July compared to the 0.6% expected by the markets.
Key Quotes
“German Factory Orders for July showed a decline of 1.4% on the month, quite a bit weaker than the -0.6% expected by markets. The main area of weakness was foreign orders, which fell 5.2% on the month on weak foreign capital and consumer goods demand.
“However, domestically, orders were up over 4%, and in particular, the manufacturing sales figure rose 1.8% in July, and its strongest monthly growth since the beginning of 2014. This tends to be a good indicator for the German industrial production figure, and with today’s data, suggests that IP could come in well above market expectations of 1.1% in July and come close to 2%.”
Key Quotes
“German Factory Orders for July showed a decline of 1.4% on the month, quite a bit weaker than the -0.6% expected by markets. The main area of weakness was foreign orders, which fell 5.2% on the month on weak foreign capital and consumer goods demand.
“However, domestically, orders were up over 4%, and in particular, the manufacturing sales figure rose 1.8% in July, and its strongest monthly growth since the beginning of 2014. This tends to be a good indicator for the German industrial production figure, and with today’s data, suggests that IP could come in well above market expectations of 1.1% in July and come close to 2%.”