German Factory Orders drop 1.6% MoM in May vs. 0.5% expected

Germany’s Factory Orders unexpectedly fell in May, according to the official data published by the Federal Statistics Office on Thursday, suggesting that the German manufacturing sector recovery is in the doldrums.

Over the month, contracts for goods ‘Made in Germany’ dropped 1.6%, having registered a 0.2% decline in April while missing the estimates of 0.5%.

Germany’s Industrial Orders plunged 8.6% in the year through May, compared with the previous drop of 1.6%.

FX implications

The Euro remains undeterred by the weak German data, as the EUR/USD pair keeps its range near 1.0800, almost unchanged on the day, as of writing.