German factory orders fell for a fifth consecutive month in May, official data showed Thursday, the latest sign that the recovery in Europe鈥檚 biggest聽economy聽was struggling to gain momentum.
New orders, closely watched as an indicator of future business activity, dipped by 1.6 per cent month-on-month, according to federal statistics agency Destatis.
The decline surprised analysts, who had been expecting an uptick in orders.
It was led by a 2.8-per cent fall in demand from abroad, while domestic orders rose by 0.5 per cent.
鈥楾ogether with the recent deterioration in business expectations in the manufacturing sector, the continuing decline in incoming orders鈥� points to 鈥榬ather subdued鈥� industrial activity in the months ahead, the聽economy聽ministry said in a statement.聽
鈥極rder intakes are only likely to stabilise once global trade recovers further and demand for industrial products gradually picks up.鈥�
Export powerhouse Germany, traditionally a driver of European growth, has been struggling since Russia鈥檚 invasion of Ukraine in 2022 sent energy prices soaring.聽
The crucial manufacturing sector has been hit particularly hard, contributing to a downturn that saw the聽economy聽shrink in 2023.
Easing inflation and lower interest rates are expected to drive a modest recovery this year, with the German government forecasting growth of 0.3 per cent.
But Germany鈥檚 rebound will be sluggish compared to the wider 20-nation eurozone, which the European Union predicts will expand by 0.8 per cent in 2024.