In July, German factory orders rose by 3.5% M/M, while an increase by 2.0% M/M was expected. The previous figure was however downwardly revised from 4.5% M/M to 3.8% M/M. Looking at the details, intermediate goods (5.2% M/M), manufacturing orders (3.5% M/M) and capital goods (3.2% M/M) rose significantly, while consumer goods dropped by 1.5% M/M. Interestingly, the steep rise was dominated by a rise in domestic orders. In July, German factory orders rose for the fifth consecutive month, providing further evidence that Europe’s biggest economy is recovering.