World Economy

German Factory Orders Drop

German Factory Orders DropGerman Factory Orders Drop

German factory orders dropped a larger than expected 1.4% in July compared to the previous month, dragged down by flagging foreign demand, AP reported. The Federal Statistical Office reported Friday that it revised June’s 2% increase downward to a rise of 1.8%, adjusted for seasonal and calendar factors. In July, domestic orders increased by 4.1% but foreign orders decreased 5.2%. New orders from the euro currency area were up 2.2%, but new orders from other countries dropped 9.5%. UniCredit economist Andreas Rees says the July drop, greater than the 0.6% drop predicted by analysts, seems more of a “technical breather after a strong rally” than a matter for concern.