Stagnation continues - German new orders disappointed in May, adding further evidence that the German industry is struggling to gain momentum.
New orders in May remained unchanged, from a slightly revised decrease of 1.9% MoM in April. On the year, new orders were down by 0.2%. In the past, May data for new orders have often been subject to revisions due to the high amount of vacation and public holidays. However, even with some revisions, today’s new orders are a disappointment.
The regional composition of new orders shows a slightly more differentiated picture. While domestic orders dropped by 1.9% MoM, foreign orders increased by 1.4%, with continued strong demand from Eurozone peers. Demand from outside the Eurozone, however, remains weak.
Since the start of 2015, new orders have been decreasing by an average of 0.1% MoM. While foreign orders have dropped by a monthly average of 0.2%, domestic orders increased by 0.1%. Even if monthly new orders data is often filed away as being too choppy to matter, the trend is obvious: the German industry is treading water.