German factory orders unexpectedly drop as supply problems mount – business live | Business


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German factories have suffered their steepest fall in orders since the first lockdown, in a sign that the global recovery is uneven as supply problems hit economies.

German manufacturing orders fell by 3.7% in May, new figures from the Federal Statistics Office show — dragged down by a slump in overseas orders, and less demand for heavy duty machinery.

It’s the first drop in new business this year — at a time when Germany’s economy seemed to be rebounding strongly from the pandemic.

Economists surveyed by Reuters had forecast of a 1% rise, and May’s fall comes after an upwardly revised increase of 1.2% in April.

Although domestic orders increased by 0.9% during the month, foreign orders slumped by 6.7%, with orders from beyond the eurozone sliding by 9.3%.

Manufacturers of intermediate goods (used to make…

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