German factory orders seem to have rebounded in July

Germany’s factory orders are likely to have grown in July after posting a weaker than anticipated figure in the previous month. According to a Societe Generale research report, factory orders are expected to have increased 0.6 percent in sequential terms, as compared with June’s decline of 0.4 percent month-on-month.

Both foreign and domestic orders are likely to add to the increase of the headline figure. Even if the survey data has weakened slightly, probably Brexit related, export orders have continued to be buoyant in the summer, noted Societe Generale.

With the strength of domestic demand, domestic order is also likely to remain strong in the medium term. Given the current evidence, Germany’s economic activity is likely to remain resilient in the third quarter with a rebound in domestic demand and household consumption, so any effect from weakening sentiment is expected just in the fourth quarter, stated Societe Generale.