Germany's July Manufacturing Sales And New Orders Slow

The value of Germany's new orders fell 2.6% in July from June, the first month to month decline since December of last year. The decline was due entirely to a decline in foreign orders as domestic new orders held steady. Total export orders fell 4.5%, those from the Euro Area, 6.5% and those from non Euro areas, 2.9%. Sales, however, declined in all three areas, but to a small degree; a 0.39% decline in the domestic market, a 1.23% decline in the Euro Area and a 0.77% decline in the non euro export market.

Too much significance should not be attached to one month's change since, even though seasonally and working day adjusted, month to month changes in orders and sales tend to be volatile. Moreover, the July declines follow particularly strong growth in both sales and new orders in the first half of the year as can be seen in the first and second charts that show the value of sales to the three markets and the value of new orders received from these markets.*

The magnitudes of the July declines in sales and orders do not necessarily presage a drastic decline in Germany's sales and new orders. They are consistent with continued growth, but, no doubt, at a slower rate.

*The sales data include mining as well as manufacturing whereas the orders data include only manufacturing.