German factory orders are down more than expected, and construction PMI falls faster than at any time in the last one and a half years

New factory orders in the German industry fell by 1.1% month-on-month in July, exceeding the forecast of a 0.5% decline.

The decline followed a revised 0.3% drop in June.

July’s decline was the sixth consecutive month of declines in new manufacturing orders, with domestic orders down 4.5% and euro area orders down 6.4%. Orders for consumer goods fell 16.9% as the manufacturing of pharmaceuticals declined. Orders for capital goods decreased by 0.2%, while those for intermediate goods increased by 1.5%.

According to IHS S&P Global, the PMI for construction in Germany for the month of August fell to 42.6 from 43.7 the previous month.

The decline means that construction activity in Germany is declining at its sharpest rate in a year and a half.

New orders fell heavily as high prices, increased interest rates and concerns about the economy put the construction sector under severe pressure.

Leave a Reply

Change Language
%d bloggers like this: