German factory orders rise as large-scale orders grow

German factory orders rose by 2.9% month-on-month in July, according to the Federal Statistical Office, beating market calls for a 1.5% drop and following June's upwardly revised 4.6% gain.

July's increase marked a second consecutive monthly increase, principally due to an 86.5% increase in large-scale orders for aircraft, ships and trains). Orders for electrical equipment also grew, up 18.6% month-on-month, while demand shrank 6.1% for machinery and equipment. Excluding large orders, incoming orders fell 0.4% from June.

New orders increased 3.5% for capital goods and 4.4% for intermediate goods but fell 5.8% for consumer goods.

Notably, foreign orders gained jumped 5.1%, aided by a 5.9% jump in orders from the Eurozone and 4.6% outside. Domestic orders remained unchanged.

Reporting by Iain Gilbert at Sharecast.com