German factory orders fell sharply in August, the biggest drop since January this year, casting a shadow over the continued recovery of the manufacturing industry. According to the data, following a 3.2% increase in July, German factory orders fell 10.6% month-on-month in August, while economists had previously expected a decline of only 1%. The sharp drop in orders was mainly due to a decrease in large orders. After excluding this factor, overall demand fell by only 0.1%. On a three-month basis with low volatility, overall demand continued to grow by 1.3%. This result casts a fresh shadow over the resilience of the German economy. Earlier data showed that despite the impact of inflation caused by the Middle East conflict, the German economy has shown some resilience. As a result, Germany's major economic research institutes have more than doubled their economic growth forecast for this year to 1.3%.

German factory orders fell sharply in August, the biggest drop since January this year, casting a shadow over the continued recovery of the manufacturing industry. According to the data, following a 3.2% increase in July, German factory orders fell 10.6% month-on-month in August, while economists had previously expected a decline of only 1%. The sharp drop in orders was mainly due to a decrease in large orders. After excluding this factor, overall demand fell by only 0.1%. On a three-month basis with low volatility, overall demand continued to grow by 1.3%. This result casts a fresh shadow over Germany's economic resilience. Earlier data showed that despite the impact of inflation caused by the Middle East conflict, the German economy has shown some resilience. As a result, Germany's major economic research institutes have more than doubled their economic growth forecast for this year to 1.3%.