German Factory Orders’ Unexpected Drop Hurts Rebound Hopes

German factory orders unexpectedly slumped the most since January, undermining optimism that the sector can soon emerge from three years of recession.

Demand dropped 2.9% in July from the previous month, driven by declines in large-scale orders, the statistics office said Friday. Economists polled by Bloomberg had predicted a 0.5% gain. Without major orders, there would have been a 0.7% increase.