On Tuesday, the federal statistics agency reported a surprise drop in German industrial orders in April due to large orders.
Seasonally and calendar-adjusted industrial orders declined 0.4% last month. Analysts polled by Reuters predicted a 3.0% rise.
April saw a 1.4% increase in non-large orders.
The statistics agency updated March’s fall to 10.9% from 10.7%.
Berenberg chief economist Holger Schmieding told Reuters that new orders are sluggish and the backlog is huge. April industrial orders fell 9.9% year-over-year.
“Companies will continue to produce, but new orders are not coming in as much as usual, so there is no reason to ramp up production,” Schmieding added.
“Production has no scope to rebound further,” said Capital Economics senior Europe economist Franzisca Palmas. “New demand is very niche.”
The statistics office reported that domestic orders grew 1.6%, and overseas orders fell 1.8% last month.
Sectors differed greatly. Electrical equipment and motor vehicle production increased orders while machinery, equipment, and miscellaneous vehicle building (ships, railways, aircraft) declined.
The statistics office posts more economic data online.
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