Orders in German manufacturing fall in August as car sector struggles

New orders in German manufacturing unexpectedly declined on-month in August, driven by a "substantial" fall in new orders for the automotive industry, data published by the Federal Statistical Office showed on Tuesday.

New orders in manufacturing were 0.8% lower in August, compared to a 2.7% fall in July but underperforming against the FXStreet-cited consensus of a 1.4% climb. July's decline was upwardly revised from 2.9%.

On-year, new orders were up 1.5% in August after a 3.3% decline in July, the latter revised up from 3.4%.

The decline in new orders in manufacturing in August was mostly due to a "substantial" fall in new orders in the automotive industry, which was down 6.4% monthly, the statistical office said.

Further, there was a 12% decline in the manufacture of computer, electronic & optical products and a 14% contraction in the pharmaceutical industry.

More positively, there was a 15% monthly rise in August in new orders for the manufacture of fabricated metal products excluding machinery and equipment. Further, the statistical office noted a 17% rise in the manufacture of other transport equipment and a 7.2% climb in the manufacture of electrical equipment.