Germany’s factory order dives 11.8 percent annually in June

(MENAFN) On Tuesday, the federal statistical authority Destatis reported a significant decline in factory orders in Germany for June 2024, showing an 11.8 percent drop compared to the same month in the previous year. This decline marks a continuation of the downward trend observed in May, where factory orders had already decreased by 8.7 percent year-on-year. The data reflects ongoing challenges in the manufacturing sector, underscoring a period of sustained contraction in factory demand over the past several months.

Despite this overall negative trend, there was a notable development on a monthly basis in June. For the first time in five months, factory orders saw an increase, rising by 3.9 percent from the previous month. This upturn was largely driven by a significant boost in the automotive industry, which Destatis highlighted as the primary factor behind the improved performance in new orders.

However, even with this monthly rebound, the broader picture of the manufacturing sector remains subdued. Real turnover in manufacturing for June 2024 fell by 0.9 percent compared to May and was down by 5 percent in comparison to June 2023. This suggests that while there was a temporary recovery in order volumes, overall manufacturing activity continued to lag behind both the preceding month and the same period last year, reflecting ongoing economic challenges within the sector.

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