German factory orders rise by more than expected in June on another surge in large-scale orders

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<ul><li>June industrial orders +3.1% vs +0.3% m/m expected</li><li>Prior +1.9%; revised to +0.3%</li></ul><p class="text-align-justify" style="text-align: justify;">The bump higher in June comes after a big downwards revision to the May figure, with the German stats office noting that as being due to "an amended adjustment for price changes". So, there's that to take into consideration.</p><p class="text-align-justify" style="text-align: justify;">But a similar story to May is that the surge in factory orders in June owes much to large orders for the most part. If excluding large orders, German industrial orders were actually down 0.5% on the month instead.</p><p class="text-align-justify" style="text-align: justify;">Looking at the less volatile three-month on three-month comparison, new orders were up 1.3% in the period of April to June compared to the previous three months. But again when you exclude large orders, new orders were actually flat (0.0%).</p><p class="text-align-justify" style="text-align: justify;">The more detailed look to the June report shows a surge in large-scale orders in in the manufacture of machinery and equipment (+12.7%) and the manufacture of computer, electronic and optical products (+22.7%). But at least the automotive industry also registered growth in new orders on the month (+3.8%).</p><p class="text-align-justify" style="text-align: justify;">The overview breakdown shows that new orders for capital goods were up 6.4% on the month, and consum