German industrial orders fell surprisingly sharply in July, posting an 11.7% month-on-month decline, according to the Federal Statistical Office. Analysts had expected a decline of 4.0%. The decrease was mainly attributed to the previous month’s increase in the aerospace sector.
New orders in June were up unexpectedly, indicating the volatile nature of the order situation. The weak global economy and high energy costs continue to impact German industry. In a stable three-month comparison from May to July, order intake was 3.1% higher than in the previous three months. Excluding major orders, there would have been an increase of 0.3% in July.