German factory orders saw a stronger-than-expected rise of 3.1% in June compared to the previous month, according to Germany's statistics office. This figure comfortably surpassed analysts' predictions of a 0.3% increase. However, when large orders were excluded, new orders dipped by 0.5%.
Over the three months to June, new orders increased by 1.3% from the preceding three months. Growth was notably strong in machinery and equipment, up 12.7%, and computer, electronic, and optical products, which rose by 22.7%. The car industry also reported a 3.8% rise in orders.
In contrast, orders for aircraft, ships, trains, and military vehicle equipment plunged by 41.7%. Foreign orders in June increased by 0.2%, with orders from the euro area falling by 14% and those from outside the eurozone rising by 10.2%. Domestic orders saw a 7.8% increase.
Meanwhile, Rheinmetall, Germany's largest defence company, has lowered its sales forecast for this year after losing a significant German naval contract worth several billion euros. The company now anticipates annual revenues could be as low as €13.7bn, down from its previous low-end forecast of €14bn. This follows Germany's cancellation of the F126 frigate programme in June, which Rheinmetall stated could reduce its revenues by up to €300m.
Asian shares retreated on Thursday, reversing the previous day's tech rally, as investors became more cautious. This trend mirrored Wall Street, where SpaceX, led by Elon Musk, fell 13.6% and chipmaker AMD tumbled 7%.