Data published by the Federal Statistical Office (Destatis) showed that in May, factory orders fell by 1.4% after an increase of 1.6% in April (revised from +0.6%). It was the sharpest drop since January. Economists had expected a 0.1% decline. Meanwhile, over the last three months (through May), factory orders rose by 2.1% compared to the previous three months. When large-scale orders are excluded, new orders fell by 3.1% compared to April and rose by 1.9% q/q over a three-month period.
Destatis said that the May change was primarily attributable to the substantial decline in new orders in the "manufacture of computer, electronic and optical products" sector (-17.7% mom). Furthermore, decreases observed in the "manufacture of electrical equipment" and "manufacture of basic metals" sectors (-6.2% and -5.1%, respectively) also had a negative impact on overall performance. The increase in orders was recorded in the manufacture of fabricated metal products (+18.2%) and in the manufacture of other transport equipment (+6.8%).
As for sectors, new orders for both capital goods and intermediate goods dropped by 0.9% mom and 3.4% mom, respectively. By contrast, new orders for consumer goods grew by 3.1%.
Meanwhile, foreign orders increased by 2.9% m/m, while new orders from the euro area fell by 6.5% m/m. New orders from the rest of the world rose by 9.0% m/m, while domestic orders fell by 7.8% m/m.