Decline expected in Germany's factory orders in July

Following the stronger than expected rise in June (2% mom), we expect factory orders to decline by 0.6% mom in July. Domestic orders should rise by around 1%, having disappointed since March. 

"Weak construction activity and investment may be the reason following increased uncertainty with regards to Greece. Foreign orders on the contrary should see a strong decline of 2% mom following a strong Q2 when US demand increasingly came back online after a weak Q1", says Societe Generale. 

With increased uncertainty over Chinese and emerging market demand, foreign orders could see more lasting weakness going ahead.