German factory orders expected to bounce back in August

Following the stronger than expected decline in July (-1.4% mo m), factory orders are expected to increase by 0.6% mom in July. Domestic orders could see a decline by around 0.5%, having surprised on the upside in July for the first time since March, while foreign orders should see a strong bounce of around 1.5% following the larger than expected decline in July. 

August should still be too early to see any major impact coming from the market turbulence surrounding China but also from the VW story which could have some impact on orders starting in September/October. For Europe and the US, the data flow has continued to signal robust growth which should shelter factory orders to some extent in the coming months.