Euro zone industrial orders dip

The euro zone's July industrial new orders fell more than expected from June amid a plunge in the volatile reading for transport…

The euro zone's July industrial new orders fell more than expected from June amid a plunge in the volatile reading for transport equipment, data showed today.

European Union statistics office Eurostat said orders in the 13 countries using the euro declined 4 per cent from the previous month but jumped 10.9 per cent year-on-year.

Economists polled by Reuters had expected a fall of 3 per cent on the month and an annual gain of 10.4 per cent.

Excluding planes, ships and trains, July orders fell 0.1 per cent on a monthly basis and grew by 11.7 per cent year-on-year. Orders for transport equipment sank 16 per cent month-on-month, but increased 10 per cent in annual terms.

READ MORE

Eurostat revised up its June industrial orders data to a gain of 4.5 per cent month-on-month from the previous reading of 4.4 per cent, and to an annual increase of 14 per cent versus the 13.8 per cent growth initially reported.

New orders give an indication of future industrial output and therefore overall economic activity, which in turn may impact interest rate decisions by the European Central Bank.

But today's data referred to the period before the global credit crunch originating in the US subprime mortgage sector.