Strong foreign demand lifts Germany’s July industrial orders
Germany’s industrial orders surprisingly increased in July based on official data released on Monday. Its latest figure touched a post-reunification high, indicating a strong start to the second half.
The Federal Statistics Office posted a seasonally adjusted 3.4% gain in orders for goods ‘Made in Germany’. It was better than analysts’ projection of a 1.0% increase in the same month.
The report highlighted a drop of 2.5% in domestic orders and an 8.0% surge in foreign orders.
Orders in Europe fell 4.1%, while it soared 15.7% from the rest of the world. The increase was owed to large orders from the shipbuilding sector.
However, economist Bastian Hepperle of Bankhaus Lampe said Germany’s development was disappointing, with a lot of order backlogs and order books still well-filled. German manufacturers labored to meet high demand due to supply shortages in raw materials and components.
Meanwhile, the government sees an economic growth of 3.5% this year and 3.6% next year, but supply constraints and mounting COVID-19 cases are causing businesses to be pessimistic.