German factory orders down 4 per cent in June

BERLIN – Official data show that factory orders in Germany dropped a steep 4 per cent in June compared with the previous month, led lower by a drop in demand from outside the eurozone.

The figure released Monday by the Economy Ministry compared with a gain of 2.6 per cent the previous month. The ministry said that orders in the second quarter were down 1.6 per cent overall compared with the previous quarter, largely because of lower demand for investment goods such as factory machinery.

In June, orders from inside Germany were down 2.8 per cent and those from other countries in the 19-nation eurozone dropped 2.7 per cent. Orders from outside the eurozone fell 5.9 per cent.

The German economy, Europe’s biggest, remains robust, with business confidence high and unemployment low despite some disappointing data this year.