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Factory orders in Germany are likely to have increased in May after declining sharply in April. In a Societe Generale’s research report, factory orders are expected to have recovered by growing 1.2 percent month-on-month, following a two percent decline in April.
Since the beginning of 2016, domestic orders have been recovering at a stable pace and are expected to continue rebounding. Meanwhile, foreign orders are expected to have been volatile.
PMIs have hinted that orders might have recovered further in June that might permit an enhanced second quarter, better than expected earlier, according to Societe Generale.
However, with the uncertainty shock emerging from the Brexit vote, there is a risk of material weakness at the beginning of the third quarter. Domestic conditions are expected to compensate for weaker foreign demand, added Societe Generale.
