The Federal Statistical Office’s (Destatis) report revealed that new orders in the German manufacturing sector decreased by 2.7 percent m-o-m in seasonally terms in July, following an upwardly revised 2.7 percent m-o-m advance in June (originally a 2.5 percent m-o-m gain). That was the biggest monthly decline in factory orders since February.

Economists had forecast a drop of a 1.5 percent m-o-m.

According to the report, domestic orders fell by 0.5 percent m-o-m in July. Meanwhile, foreign orders declined by 4.2 percent m-o-m as a 0.3 percent m-o-m gain in new orders from the euro area was more than offset by a 6.7 percent m-o-m tumble in new orders from other countries.

New orders for intermediate goods decreased by 2.2 percent m-o-m in July, while orders for consumer goods dropped by 2.4 m-o-m and the orders for capital goods declined by 3.0 percent m-o-m.