GERMANY APR FACTORY ORDERS -2.7% M/M, -6.2% Y/Y; MAR -4.2r%
- German factory orders came in substantially weaker than forecast in April, dashing the expected recoveries by contracting 2.7% m/m (vs +0.4% expected) and diving to -6.2% y/y (-4.1% expected).
- The German Statistics Office stated that this third month of contraction is on the back of escalations in the Ukraine war, as demand for capital goods slumped a further 4.3% as economic uncertainty grew. Consumables also saw a decline, of 2.6%.
- The latest factory orders release foreshadow the closely watched German IP due tomorrow and imply downside surprises to the data set.
- March readings were upwardly revised by 0.5pp for the month-on-month to -4.2% and by 0.2pp to -2.9% y/y.