(MW) FRANKFURT–German manufacturing orders plunged in June, led by a sharp drop in demand from outside the eurozone–a sign that mounting trade tensions between the U.S. and the EU is weighing on corporate investments.
The economics ministry said Monday that total manufacturing orders dropped 4.0% compared with May. Economists polled by The Wall Street Journal had forecast a 0.5% decline.
“Uncertainties from the trade policy should have played a role,” the ministry said.
Foreign orders declined 4.7% in June compared with May, with a 5.9% drop in demand from outside the eurozone. Domestic orders fell 2.8% on the month.
“Today’s new orders data do not bode well for German industry going into the second half of the year,” Carsten Brzeski, an economist at ING, said.
German manufacturing orders were also down 0.8% from June last year, taking account of calendar effects.
“Apart from a marked increase in May, orders in the manufacturing sector have been weak this year,” the ministry said.