- German Factory Orders dropped by 3.7% MoM in May, a big miss.
- On a yearly basis, Germany’s Factory Orders jumped by 54.3% in May.
- EUR/USD tests highs near 1.1890 on dismal German Factory data.
The German Factory Orders unexpectedly fell in May, suggesting that the manufacturing sector in Europe’s economic powerhouse is still in the doldrums.
Contracts for goods ‘Made in Germany’ arrived at -3.7% on the month vs. 5.0% expected and -0.2% last, the latest data published by the Federal Statistics Office showed on Tuesday.
On an annualized basis, Germany’s Industrial Orders rose by 54.3% in the reported month vs. 80.2% previous and expected growth of 75.4%.
FX implications
The shared currency remains unfazed by the disappointing German Factory Orders data, as EUR/USD flirts with daily highs of 1.1891, up 0.26% on the day.
About German Factory Orders
The Factory orders released by the Deutsche Bundesbank is an indicator that includes shipments, inventories, and new and unfilled orders. An increase in the factory order total may indicate an expansion in the German economy and could be an inflationary factor. It is worth noting that the German Factory barely influences, either positively or negatively, the total Eurozone GDP. A high reading is positive (or bullish) for the EUR, while a low reading is negative.