Germany: Factory orders fell by -0.9% m/m in July - Rabobank

Analysts at Rabobank note that orders in German factories fell by -0.9% m/m in July taking the year-on-year growth rate to -0.9%, the lowest rate since June 2016.

Key Quotes

“The fact that since the beginning of this year there has been only one month in which German factory orders rose (the cumulative decline this year amounts to -8.2%) is pretty disturbing.”

“A sharp fall in capital goods orders was the main culprit in July and this will clearly inject more uncertainty as to whether this is also the result of the rising trade tensions and the slowdown of growth in several emerging market economies.”

“Altogether, then, it seems that Bunds and other core markets should be supported by demand for safety despite the changing political tone in Rome.”