German factory orders rebound less than expected in May
German factory orders bounced back in May, albeit less than expected, according to figures released by Destatis on Monday.
Orders rose 10.4% on the month following a revised 26.2% slump in April, coming in below expectations of a 15% jump.
On the year, orders slid 29.3% in May following a revised 36.9% drop the month before and versus expectations for a 28% decline.
Compared with February 2020, the month before coronavirus restrictions were imposed in Germany, new orders in May were 30.8% lower, Destatis said.
Domestic orders increased 12.3% and foreign orders rose 8.8% on the month in May. New orders from the eurozone were up 20.9%, while new orders from other countries increased 2.0% compared with April.
The manufacturers of intermediate goods saw new orders increase 0.4% compared with April, while the manufacturers of capital goods saw a 20.3% jump in the month. Consumer goods manufacturers saw a 4.7% increase.
Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics, said: "Overall, these data confirm the still-downbeat message from the surveys that new orders are still under pressure.
"Demand and output rebounded as the domestic economy - and the economies of Germany's major trading partners in Europe - reopened, but the level of both was still far off their previous highs mid-way through Q2.
"In the key auto-sector, for example, demand remained a whopping 47% below its February level in May. This compares to a 31% shortfall for manufacturing orders as a whole. Remember though that major parts of the European continent were still locked down through the beginning May, so we need to see the June data to get a clearer picture of how quick demand is recovering."