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Economy in Brief

German Orders Soar On Overseas Demand....Domestic Orders Just Sore
by Robert Brusca August 05, 2010

German growth in orders continues to be lead by foreign demand. Despite a surge in orders in June the Yr/Yr pace in overall orders is stepping down from its highest pace of several months ago. Over 12-months foreign orders are up by 28% compared to a gain of 20% for domestic orders. Over three months, however, the pace of foreign order growth is 45.5% compared to 11.5% for domestic orders.

Export sales climbed by 5.7 percent in June, driven by an 11.3 percent gain in orders from the euro area alone. Domestic orders rose by just 0.3 percent as the domestic economy still fails to click. Investment goods orders jumped 6.4 percent and consumer goods orders advanced 0.9 percent. Basic goods orders fell 0.8 percent.

Sales trends show some strength in consumer durables but weakness for consumer demand overall. The strength in sales is still in investment goods and in intermediate goods.

With the June report in, second quarter data are complete even if not fully revised. The picture shows strength in foreign and domestic orders in the quarter with foreign orders rising at a 41% pace and domestic orders advancing at a 25% pace. Real sector sales are up at a 6% pace for consumer goods, 23% for capital goods and 26% for intermediate goods. For Germany it was a hot quarter for the manufacturing sector.

German Orders and Sales By Sector and Origin
Real and SA % M/M % Saar
  Jun-10 May-10 Apr-10 3-Mo 6-Mo 12-Mo YrAgo QTR-2-
Date
Total Orders 3.2% -0.1% 3.3% 28.9% 13.5% 24.5% -23.5% 34.2%
Foreign 5.7% 0.3% 3.6% 45.5% 20.6% 28.1% -24.1% 41.7%
Domestic 0.3% -0.5% 3.0% 11.5% 5.6% 20.2% -22.8% 25.7%
Real Sector Sales
MFG/Mining -0.3% 3.1% 1.3% 17.9% 8.6% 10.5% -17.8% 22.2%
 Consumer 0.0% 1.3% -0.9% 1.3% 0.6% 1.7% -7.2% 6.2%
 Cons Durables -0.6% 5.6% 1.3% 28.1% 13.2% 11.2% -21.4% 14.4%
 Cons Non-Durable 0.1% 0.6% -1.3% -2.5% -1.2% 0.3% -4.5% 5.2%
Captial Gds -0.6% 5.2% 0.0% 19.8% 9.5% 11.4% -22.4% 23.4%
Intermediate Gds -0.6% 1.6% 3.4% 18.5% 8.9% 14.7% -18.7% 26.2%
All MFG-Sales -0.3% 3.2% 1.3% 18.3% 8.8% 10.6% -17.7% 22.5%
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