German Machinery Orders Fell in May on Domestic Demand
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.
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