BERLIN (Reuters) -German engineering orders rose 4% in July from a year ago, with strong demand from non-euro zone countries offsetting stagnant domestic demand, but overall momentum remains subdued
German Engineering Orders Increase by 4% in July Amid Strong Foreign Demand
Overview of Engineering Orders
BERLIN (Reuters) -German engineering orders rose 4% in July from a year ago, with strong demand from non-euro zone countries offsetting stagnant domestic demand, but overall momentum remains subdued this year, engineering association VDMA said on Wednesday.
Domestic vs. Foreign Orders
Domestic orders and those from euro zone countries were flat in July while foreign orders rose 7%, driven by a 10% jump in contracts from outside the currency bloc due to demand for large plants and a weak comparative month last year, the VDMA said.
Economic Factors Influencing Orders
In the May-to-July period, orders were up 2%, with domestic contracts dipping by 1% and foreign orders up 3% due mainly to a 14% jump from euro zone countries, said the VDMA.
"Overall, momentum remains subdued this year with orders up 2% after seven months," VDMA chief economist Johannes Gernandt said.
"Uncertainty caused by U.S. President Donald Trump's aggressive tariff policy plays a role but a reform bottleneck in Germany and Europe is also paralysing investment," he said, adding relief that had been promised must come in the coming months.
CHANGE
JULY
overall +4% y/y
of which German 0% y/y
foreign +7% y/y
MAY +2% y/y
TO JULY
of which German -1% y/y
foreign +3% y/y
(Reporting by Madeline Chambers, Editing by Rachel More)
