Germany’s factory orders experienced an unexpected decline in July, dropping by 2.9% compared to the prior month, according to data released Friday by the country’s federal statistics office. This marks the largest monthly fall since January and casts doubt on hopes for a near-term revival in the manufacturing sector, which has been in a prolonged downturn for nearly three years. n nThe decrease was primarily driven by a drop in large-scale industrial contracts. Economists surveyed by Bloomberg had forecast a modest 0.5% increase for the month. However, when excluding major orders, the data showed a slight 0.7% rise, suggesting underlying demand may be stabilizing outside of big-ticket projects. n nThe disappointing figures add pressure on policymakers and reinforce concerns about the broader economic outlook in Europe’s largest economy. A recovery in manufacturing has been seen as essential for overall growth, but persistent weak demand, both domestically and internationally, continues to hinder momentum. n n— news from Bloomberg.com n
— News Original —nGerman Factory Orders’ Unexpected Drop Hurts Rebound HopesnGerman factory orders unexpectedly slumped the most since January, undermining optimism that the sector can soon emerge from three years of recession. n nDemand dropped 2.9% in July from the previous month, driven by declines in large-scale orders, the statistics office said Friday. Economists polled by Bloomberg had predicted a 0.5% gain. Without major orders, there would have been a 0.7% increase.