German industrial orders posted an unexpected fall in June due to weaker foreign demand for goods, data showed on Friday, suggesting global weakness weighed on Europe's biggest economy at the end of the second quarter. Contracts for 'Made in Germany' goods were down 0.4 percent on the month, the Economy Ministry said, marking the second fall in three months. That compared with a Reuters consensus forecast for a rise of 0.6 percent.
Domestic demand rose by 0.7 percent while foreign orders dropped by 1.2 percent, with demand from euro zone countries plunging by 8.5 percent. "Despite the robust sentiment, industry is finding it difficult to gain ground: On average, orders are this year only slightly higher than the average of 2015, and in comparison with the same month last year the level is noticeably 3 percent lower," said Alexander Krueger of Bankhaus Lampe KG.
The Economy Ministry attributed the fall to a drop in large orders. "Industrial orders all in all showed less momentum in the first half of the year," the ministry said. "The business climate in industry reacted very moderately to the Brexit vote in the UK and remains slightly expansive." Orders for May were revised up to show a rise of 0.1 percent from the previous flat reading.
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