German factory orders likely to have increased in June

Germany’s factory orders are likely to have grown in June. According to a Societe Generale research report, factory orders are expected to have risen 1.1 percent sequentially in June, after posting a weaker than projected print of 0 percent in May.

Domestic orders are likely to have surpassed foreign orders. Also, hints from the PMIs imply that demand has quickened in the months of June and July.

This might bring certain concerns of an immediate deceleration after the Brexit vote to rest, noted Societe Generale. Given the current evidence, German economic activity seems to have been on a weak footing in the second quarter.

However, the momentum going into the third quarter has rebounded noticeably. This implies that any impacts of the Brexit vote might be seen only towards the end of 2016, added Societe Generale.