Germany: New orders dropped by 4% in June - ING

Carsten Brzeski, Chief Economist at ING, notes that German industrial orders took a severe hit in June, dropping by 4% month-on-month, from 2.6% MoM in May.

Key Quotes

“On the year, new orders were down by 0.8%. Even though new orders data are highly volatile, the June report could be a tentative sign of how trade tensions are hitting the German economy.”

“Foreign orders from outside the eurozone dropped by almost 6% MoM. At the same time, domestic orders decreased by 2.8% MoM.”

“With the sharpest drop since January 2017, today’s new orders data do not bode well for German industry going into the second half of the year.”