Germany's factory orders declined unexpectedly in June on weak foreign demand especially from the euro area, official data revealed Friday.
Factory orders fell 0.4 percent in June from May, in contrast to a revised 0.1 percent rise a month ago, Destatis said. Economists had forecast a 0.5 percent rise for June after staying flat in May, as initially estimated.
Domestic orders increased by 0.7 percent, while foreign orders decreased 1.2 percent. New orders from the euro area declined 8.5 percent, while new orders from other countries increased 3.8 percent.
Manufacturers of intermediate goods registered decreases in new orders of 0.7 percent and a 0.2 percent by capital goods producers. For consumer goods, a decrease in new orders of 0.7 percent was registered.
Year-on-year, industrial production declined 3.1 percent after posting nil growth in May.Production was expected to fall 1.5 percent.
In the second quarter, new orders decreased 0.5 percent from the previous quarter. The ministry said the manufacturing sector responded to the Brexit "very moderately."
Destatis is slated to issue the second quarter GDP data on August 12.
According to the Purchasing Managers' survey, the private sector expanded at the fastest pace in 2016 so far. Manufacturers and service providers both reported stronger growth.
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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.