German factory orders fell 5.7% between July and August, worse than the 2.5% decline expected by economists. Orders are down 1.3% from August last year. It’s the worst single-month drop since the beginning of 2009.
Export orders were worst hit, and that matches the business surveys that suggest there’s been a knock-on effect from the war in Ukraine.
But domestic orders also dropped 2% from July. That’s following the latest manufacturing business survey, which indicated that the sector is now shrinking.
In a note this morning, Claus Vistesen at Pantheon Macroeconomics said: “In one line: Grim, as manufacturing slowdown deepens.”
The chart below, provided in the report, shows how factory orders and industrial production typically track each other: