German Factory Orders (AUG)
(MoM) (YoY)
Actual: 1.2% 4.0%
Expected: 2.2% 4.5%
Previous: -6.1% (R+) 10.2% (R+)
Bookings at German factories grew less than economists had expected in August. The market consensus figures were looking for a 2.2 percent increase in orders from July and a 4.5 percent increase from the same month a year ago. Instead, the far more tame 1.2 percent increase for the month and 4.0 percent for the year-over-year report marked the wires. In historical terms, this indicator is very volatile and the monthly figure is relatively staid. However, its modest improvement is far more significant when measured against the 6.1 percent plunge in orders over July (an upwardly revised figure but still the worst drawdown in activity since at least 1991). The annual figure marks the slowest pace of bookings this year and is similarly significant as it is less volatile in its readings. Looking to the breakdown, domestic orders barely nudged higher on a 0.1 percent pickup while foreign orders recovered only a portion of their 10.8 percent plunge in July by recording a 2.4 percent increase. Capital goods orders grew 1.7 percent for the month in response to a big drawdown in July while bookings for consumer goods rose 1.1 percent over the same period.
In the minutes after the release, EURUSD was little changed with a temporary base forming intraday just above 1.4080.
