2018.08.0605:07:00UTC+00German Industrial Production Growth Likely Remained Firm In Q2: Daiwa

German factory orders data for June, released Monday, revealing the biggest fall since early last year, was a downside surprise, Daiwa Capital Markets economist Mantas Vanagas said.

The economist also expects downside surprises from the June industrial production and export data due on Tuesday. However, production growth likely remained quite firm in the second quarter, around 0.5 percent sequentially, helped by a strong increase in May, Vanagas noted.

Factory orders declined 4 percent month-on-month in June, data released by Destatis showed Monday. This was the biggest fall since January 2017. Economists had forecast orders to drop slightly by 0.1 percent. Excluding major orders, new orders decreased 3.2 percent in June. Manufacturing turnover decreased 1 percent on month in June versus a 0.9 percent rise in May.

June industrial production data, due on Tuesday, is expected to show a 0.5 percent month-on-month decline after a 2.6 percent jump in May.

Similarly, June exports are forecast to fall 0.4 percent following a 1.8 percent rise in the previous month.