Germany’s Factory Orders Jump in June, But Underlying Data Shows Mixed Trends

• German factory orders rose 3.1% MoM in June, beating 0.3% forecast.
• Increase largely due to large orders; orders fell 0.5% excluding them.
• Domestic orders up 7.8%, while Euro area foreign orders declined 14.0%.
• Euro (EUR) saw a slight positive reaction.

Germany’s factory orders saw a significant increase of 3.1% month-over-month in June, substantially exceeding economists’ forecasts of a 0.3% rise. This follows a downward revision of May’s growth to 0.3% from an initial 1.9%, attributed to amended price change adjustments. While the headline figure suggests momentum in the manufacturing sector, the surge was largely driven by large orders, with new orders actually declining 0.5% when these are excluded. A breakdown reveals domestic orders rose 7.8%, contrasting with a 0.2% increase in total foreign orders, which included a sharp 14.0% decline from the euro area but a 10.2% rise from outside it. The Euro (EUR) edged slightly higher immediately following the data release, reflecting a mixed but generally positive signal for Europe’s largest economy.