Germany’s Factory Orders Plunge 10.6% in August

Germany’s manufacturing sector showed signs of slowing down in August, as factory orders plummeted by 10.6%, according to official data from the Federal Statistics Office. This decline follows a 3.2% increase in July, which was revised upward from an initial estimate of 2.5%. Economists had anticipated a more modest drop of 1.0%, making the actual fall significantly worse than expected.

Year-over-year, factory orders in Germany rose by 2.7% in August, a sharp slowdown from the previous month’s 14.0% increase, which was also revised from 13.1%. The data suggests that demand for ‘Made in Germany’ goods is weakening, raising concerns about the sector’s resilience.

The Euro (EUR) reacted negatively to the news, with the EUR/USD pair edging slightly lower. As of the latest update, the pair was down 0.10% on the day, trading at 1.1212.