GERMAN DATA: VDMA "Slightly Optimistic" On Machinery Orders Following May Data

German real machinery orders increased 9% Y/Y in May according to VDMA data. Base effects underpinned the print as last May was a particularly weak month. On a broader YTD basis, machinery orders rose 3%, with a 4% rise in foreign orders and domestic orders unchanged.

• "This development confirms our slight optimism for the second half of the year. The order situation underpins our production forecast of a real decline of 2 percent for 2025. Global uncertainty remains high. This makes it all the more important for the EU to quickly reach an agreement with the US on ending the ongoing trade disputes and to prevent further escalation", VDMA comments.
• Overall May German factory orders data is due Friday, with consensus looking for -0.2% M/M (following April's +0.6%).