Germany manufacturing orders down 1.7 percent in May

Nathan Andrada – Fourth Estate Cooperative Contributor

Berlin, Germany (4E) – Manufacturing orders in Germany dropped by more than anticipated in May, due to a decline in foreign and domestic orders, according to government data released Friday in Berlin.

Seasonally adjusted orders dropped 1.7 percent in May, compared with a revised 3.4 percent gain in April, according to the Economy Ministry report. The median estimate of 30 economists surveyed by Bloomberg News was for a 1.1 percent decline.

May’s domestic orders fell 2.5 percent, while foreign orders were down 1.2 percent. Orders from the euro area remained robust, expanding 5.7 percent in May following a nearly 9 percent rise in the prior month. However, orders beyond the common currency bloc dropped 5.2 percent.

In separate reports, the Ifo research institute’s German business confidence index dropped to its lowest level in six months in June and unemployment climbed for a second month in a row.

Research firm Markit Economics said Thursday that despite the weakness in the services and manufacturing industries since May, the German economy is still expected to grow by 0.7 percent in the second quarter, following a 0.8 percent gain in the first quarter through March.

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