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6 Aug 2014
German Factory Orders drop in June driven by weaker demand from Eurozone peers - ING
FXStreet (Łódź) - Carsten Brzeski from ING comments on the German Factory Orders data, which came in lower than expected in June, with the decline driven by a decrease in domestic and foreign orders.
Key quotes
"German new orders plunged sharply in June, dropping by 3.2% MoM. At the same time, the May drop was marginally revised upwards to -1.6% MoM, from initially 1.7%. On the year, new orders are now down by 4.3%."
"Interestingly, the drop in foreign new orders was not the result from geopolitical tensions and/or the crisis in the Ukraine as orders from outside the Eurozone remained stable but rather from a sharp drop in orders from Eurozone peers (-10.4%)."
"In our view, the direct impact from the sanctions on Germany will be rather limited. It is rather the possible reaction from Russia, which could affect German growth in the second half of this year."
"While a stagnation of the German economy in the second quarter seems hard to avoid, the industrial engine is losing some fuel."
"Today’s data shows that downside risks for the German economy do not only come from geopolitical tensions but also from longer-than-expected weak demand from Eurozone peers."
Key quotes
"German new orders plunged sharply in June, dropping by 3.2% MoM. At the same time, the May drop was marginally revised upwards to -1.6% MoM, from initially 1.7%. On the year, new orders are now down by 4.3%."
"Interestingly, the drop in foreign new orders was not the result from geopolitical tensions and/or the crisis in the Ukraine as orders from outside the Eurozone remained stable but rather from a sharp drop in orders from Eurozone peers (-10.4%)."
"In our view, the direct impact from the sanctions on Germany will be rather limited. It is rather the possible reaction from Russia, which could affect German growth in the second half of this year."
"While a stagnation of the German economy in the second quarter seems hard to avoid, the industrial engine is losing some fuel."
"Today’s data shows that downside risks for the German economy do not only come from geopolitical tensions but also from longer-than-expected weak demand from Eurozone peers."