In Germany, the eurozone’s largest economy, coronavirus (Covid-19) outbreak was brought under control and economic activity was reopened. Thus, macro data showed improvements.
According to Destatis data released today, factory orders in Germany (seasonally adjusted) in May increased by 10.4 percent and stayed below market expectations of 15.0 compared to the previous month.
According to Destatis, the manufacturers of intermediate goods saw new orders increase by 0.4% compared with April 2020, and manufacturers of capital goods saw an increase of 20.3% on the previous month. Regarding consumer goods, new orders rose 4.7%. Additionally, domestic orders increased by 12.3% and foreign orders raised by 8.8%.
Factory orders had contracted by 25.8 percent in April, hitting a record low, due to the outbreak and strict quarantine measures imposed by the German government against coronavirus. However, a gradual removal of the measures implemented in order to contain the outbreak as of May, as well as a moderate recovery in global demand, led to a strong rise in factory orders. It is also necessary to underline that the economic supportive policies implemented by the financial and monetary authorities during this period significantly supported the recovery in factory orders.
In June, it will be possible to expect an increase on a monthly basis in the next dataset to be announced, especially as the demand for intermediate and durable goods continues to recover due to the fact that most of the measures against the outbreak have been removed in a controlled manner and global economic activities have been opened.