Paris air show drives German factory orders to highest growth rate in eight months
The volume of new orders, shipments, unfilled orders, and inventories reported by German manufacturers rose 4.3 per cent in June compared to the year before. Analysts had expected a 0.2 per cent fall, down from the 2.0 per cent decrease in May.
Compared to the month before, factory orders were up 3.8 per cent – the biggest rise in eight months. Analysts had expected a 1.0 per cent rise after a 0.5 per cent monthly fall in May (revised up from a 1.3 per cent fall). Foreign demand drove the growth, with orders up 4.2 per cent, although domestic demand was strong, rising 3.3 per cent.
However, most of this growth was driven by big, one-off items like orders from the Paris air show. Without these items, factory orders would likely have fallen. Airbus, a subsidiary of EADS, received orders for 466 planes worth $69bn at the Paris Air Show in June.