Reduction on overseas demand hit German manufacturers in June, as orders fell, Bloomberg reports.

Orders volume dropped by 4% compared with last month and by 0,8% compared with last year. This is the first yearly decline since 2016.

Country's Minister of Economy aknowledged that uncertainty about future trade policies played an important role in this decline.

BMW AG, which exports its cars from plant in South Carolina to China, joined other auto producers in the world warning that trade tensions will result in profit decline in coming months.

Overseas orders fell in June by 4,7%, while demand from countries outside of euro zone declined by 5,9%. Local orders lost 2,8%. Reduction in investment goods orders causes serious concern. They fell by 4,7%.

Data on industrial output will be issued on Tuesday. Economists expect that output will most likely fall by 0,5% in June and export by 0,4%.