German factory orders plunged more than forecast in July, raising concerns that Europe’s biggest economy may experience a technical recession.
Factory output dropped 2.7 percent in July, following a revised 2.7 percent increase a month earlier, compared to analysts’ forecasts of 0.2 percent rise. Orders were 7 percent down from a year ago, the biggest fall since 2012.
New orders from foreign buyers slipped by 6.7 percent and domestic demand dipped 0.5 percent, the Federal Statistics data showed.
“In light of ongoing international trade conflicts and modest business expectations in manufacturing, no fundamental improvement in momentum is in sight for the coming months,” Germany’s economy ministry said.
The German economy fell 0.2 percent in the April-June quarter and latest reports threaten a collapse into recession by recording another contraction in the third quarter.
As of 08:47 GMT, the euro failed to resume its
rebound attempts as it is currently hovering around $1.1036 after recording a
peak at $1.1044.