German industry orders edge up, 'low hanging fruit' of recovery gone

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German industry orders edge up, 'low hanging fruit' of recovery gone
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Orders for German industrial goods rose by a weaker-than-expected 2.8% in July, indicating an initial snap back from the coronavirus shock is fading into a slower recovery in Europe's largest economy.

BERLIN - Orders for German industrial goods rose by a weaker-than-expected 2.8% in July, indicating an initial snap back from the coronavirus shock is fading into a slower recovery in Europe’s largest economy.

Order intake in July was still 8.2% lower than in February, before lockdown measures were imposed to slow the spread of the coronavirus. The weak domestic demand chimed with figures published on Wednesday showing German retail sales fell unexpectedly in July, dashing hopes that household spending can drive a strong recovery in the third quarter.

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