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German factory orders in July fell by 2.2% missing expectations of a 0.5% expansion according to the Economy Ministry in Berlin. The drop was most unexpected and comes as result of weakening demand from the euro-region for German produced goods, suggesting that the recovery in Germany may slow in the third quarter, after its blistering pace in Q2. Axel Weber, Germany’s central bank president said recently that “the recovery is on track, with not as high growth as before, but with only moderate growth going forward”.

Written by Jonathan Granby, DailyFX Research Team

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