German factory orders unexpectedly declined for a second month in May in a sign that the euro area’s struggle to emerge from its longest-ever recession is disrupting the recovery in Europe’s largest economy.
Orders (GRIORTMM), adjusted for seasonal swings and inflation, dropped 1.3 percent from April, when they fell a revised 2.2 percent, the Economy Ministry in Berlin said today. Economists forecast a gain of 1.2 percent, according to the median of 42 estimates in a Bloomberg News survey. Orders slid 2 percent from a year ago, when adjusted for the number of working days.
European Central Bank President Mario Draghi said yesterday that the risks to the euro-area economy are to the downside as he gave “unprecedented” forward guidance that interest rates will stay low for an extended period of time. The economy in the currency bloc, Germany’s biggest export market, contracted in the six quarters through March. Draghi reaffirmed his prediction for a recovery at a subdued pace later this year.