Germany factory orders fall 10.6% in August, far worse than forecast
The slump revives doubt about whether September's composite PMI reading of 53.8 marked a genuine turn for German industry.
Published
German factory orders fell 10.6% in August from July, official data showed, far steeper than the 1.0% drop economists had expected and a reversal of July's 2.5% gain.
The miss comes two days after September's composite PMI reading of 53.8 pointed to resilience despite ongoing political turmoil. The scale of the drop revives doubt about whether that PMI strength reflected a genuine turn in German industry or a one-off reading. GfK consumer confidence has already slid to -30.6.
German 10-year bund yields had been easing before the data, slipping to a three-week low of 3.41% on Friday after climbing as high as 3.61% in September on worries over fiscal expansion, weak auction demand and hotter than expected inflation and import price figures. Bundesbank chief Nagel said on Monday that inflation risks still tilt to the upside, a hawkish note struck just days after eurozone inflation jumped to 3.8% in September.
The data also lands as the Merz government, still managing fuel-price relief measures, deals with the fallout from a historic CDU defeat in a state election, leaving it with less political capacity to respond to a renewed industrial slowdown.