German factory orders rose less than expected in May even after authorities loosened the coronavirus lockdown, highlighting how difficult it will be to repair the pandemic’s damage. Orders rose 10.4% in May, following a cumulative slump of more than 37% in the previous two months. The Economy Ministry said that while the data suggest Germany’s industrial recession has passed the trough, “the low level of orders also indicates that the catch-up process won’t be completed for a long time.”
The country and its European neighbors have only just started down a long road back to normal. Policy makers have cautioned against reading too much into initial signs of a rebound and argued that overall activity will probably remain below pre-crisis levels for some time.
The situation in other parts of the world is more uncertain. The virus is spreading rapidly in the U.S., and China is facing intensifying disputes with Washington and risks of a second-wave of infection.