German factory orders fall short of expectations on existing domestic weakness

Factory orders in Germany rose during the month of July, but fell short of market expectations, following dampness in demand for investment goods in the domestic market.

German factory orders, adjusted for seasonal swings and inflation, rose 0.2 percent from June, when they fell a revised 0.3 percent, data released by the Ministry of Economy in Berlin showed Tuesday. The median in a Bloomberg survey was for an increase of 0.5 percent. Orders were down 0.7 percent from a year earlier.

Further, export orders were boosted by a 12.1 percent surge in euro-area demand for investment goods, according to the report. Domestic orders fell 3 percent, the most since August last year.

"The sideways movement of orders speaks for more subdued momentum in manufacturing in autumn. The business climate in manufacturing has cooled of late, even though it remains above its long-term average," Bloomberg reported, citing the Ministry of Economy in an e-mailed statement.

Meanwhile, the ministry report circled a series of domestic data that signaled that growth momentum in the Europe’s largest economy has waned off. However, the Bundesbank maintained in its last monthly report that growth is expected to pick up in the coming quarters.