Although there was a slight upward revision to the June numbers, there isn’t much to cheer in the German July factor orders report. Orders fell a further 2.7% m/m. That takes the current decline to -11.2% from its peak.
Deterioration continues to run at pace, with some rebound in domestic demand failing to offset continuing weakness on the export side. The release points to a further deterioration in exports in the coming months, although the decline in industrial production is running more closely, suggesting that a further downward adjustment/slump is not needed there.