German Manufacturing Orders Drop

By Dow Jones Business News, 
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FRANKFURT--German manufacturing orders fell by more than expected in May, as both foreign and domestic orders dropped, official data showed Friday.

Orders fell 1.7% compared with a month earlier in adjusted terms, after economists surveyed by The Wall Street Journal had expected a 1.2% decline. April's growth figure was revised to 3.4% from 3.1%.

Domestic orders in May declined 2.5%, while foreign orders dropped 1.2%. Orders from the euro zone were strong, growing 5.7% and maintaining some momentum after April's rise of nearly 9%. Orders from outside of the currency bloc, however, fell 5.2%.

The Economics Ministry said that, following the strong start to the second quarter, it expects orders to grow in the period. It signaled, however, that higher geopolitical risk could be an impediment.

That assessment is in line with survey indicators published late last month. The closely watched Ifo business confidence survey for June reported that the German economy "fears the potential impact of the crises in Ukraine and Iraq." It also noted a considerable drop in manufacturing sentiment in the survey.

The ministry said the share of bulk orders was above average for May and that without these, orders would have fallen 3.7% from a month earlier.

Write to Todd Buell at todd.buell@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires


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This article appears in: Economy , International


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