Factory orders in Germany have fallen since March

Germany's Federal Statistical Office (Destatis) has announced provisional data on factory orders for July.

Accordingly, orders for products manufactured in the country decreased by 1.1 percent in July compared to the previous month. The orders in question decreased by 13.6% compared to July 2021.

The market expectation for factory orders was 0.5 percent monthly decrease.

In Germany, a 4.5 percent decrease was observed in domestic orders on a monthly basis in July, while an increase of 1.3 percent was recorded in foreign orders.

In the said period, new orders from the Eurozone decreased by 6.4 percent compared to June, while orders from other countries to Germany increased by 6.5 percent.

In July, orders from intermediate goods producers increased by 1.5 percent on a monthly basis. Capital goods orders decreased by 0.2 percent and consumer goods manufacturers' orders decreased by 16.9 percent due to the 23.6 percent decrease in orders in the pharmaceutical industry.

Factory orders in the country decreased by 0.3 percent as revised in June due to low foreign demand.

"Demand in the manufacturing sector was weak at the beginning of the third quarter due to the Russia-Ukraine war and high gas prices," the German Ministry of Economy and Climate Protection said in a statement.

Economists say that the cooling global economy, material shortages and rising prices have reduced the demand for German industrial goods, and that rising energy costs may put pressure on the country's manufacturing sector, in particular.