Weak Increase in German Industrial Orders Dashed Hopes For a Strong Recovery

Data showed that German industrial goods orders increased less than expected at 2.8% on a monthly basis in July, further hampering hopes that Europe’s largest economy could recover strongly in the third quarter from the coronavirus crisis.

The increase comes compared with a Reuters forecast of a 5% rise and indicates a slow return to pre-crisis levels.

The June figures were revised upwards to show an increase of 28.8% instead of 27.9% previously.

The Federal Statistics Office said that orders were down 8.2% compared to February, before the imposition of general isolation measures aimed at slowing the spread of the Coronavirus.

Domestic orders fell 10.2% month over month in July. Orders from abroad rose 14.4%.

And data published on Wednesday showed that German retail sales fell unexpectedly in July, crushing hopes that household spending would lead a strong recovery in the third quarter from the shock of the Coronavirus.