German factory orders drop 5.7 percent on the month in August, canceling out previous rise

Economic Indicators Associated Press

The German government says factory orders dropped sharply in August — led lower by a big drop in demand from outside the euro area and canceling out a large rise the previous month.

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The Economy Ministry said Monday that orders in Europe's biggest economy were down 5.7 percent compared with the previous month. Demand was lower across the board but the biggest drop was in orders from countries outside the 18-nation eurozone, which fell 9.9 percent.

The previous month's data had sent a positive signal, with orders rising 4.9 percent in July following two more modest drops.

The Economy Ministry said big-ticket orders were slightly below average in August and demand was hit by the timing of school vacations in Germany. Domestic orders were 2 percent lower.