German plant and machinery orders fell in May as domestic demand dropped, even as recent indicators suggest a recovery in Europe’s largest economy.
Orders, adjusted for inflation, decreased 5 percent from a year ago, VDMA said in an e-mailed statement today. Orders from abroad were unchanged, while domestic orders dropped 14 percent. In the three months through May, orders remained unchanged compared to a year earlier.
The Bundesbank said this month that German gross domestic product should have improved “markedly” in the second quarter, while warning of a potential slowdown in coming months. The Frankfurt-based central bank expects growth of 0.3 percent this year and 1.5 percent in 2014, after an expansion of just 0.1 percent in the three months ended March.
There’s “no clear sign for an expansion” in investment in Germany, VDMA chief economist Ralph Wiechers said in the statement. “Domestic orders were overall disappointing.”