German Factory Order Growth Tops Expectations
October 06 2017 - 4:33AM
RTTF2
Germany's factory orders rebounded at a faster-than-expected
pace in August on robust foreign demand, data from Destatis
revealed Friday.
Factory orders grew 3.6 percent month-on-month in August,
reversing a revised 0.4 percent fall in July.
Orders have increased at the fastest pace seen so far this year.
Economists had forecast orders to climb at a slower pace of 0.7
percent.
Excluding major orders in manufacturing, new orders increased
2.5 percent on month in August.
Domestic market orders advanced 2.7 percent and foreign orders
logged 4.3 percent growth.
New orders from the euro area dropped 1 percent, while demand
from other countries increased notably by 7.7 percent compared to
July.
The German economy ministry said orders increased again from a
high level and the positive business climate confirm this
picture.
The ministry added that the solid upturn in the manufacturing
sector is likely to continue.
Order figure is doubtless encouraging and underlines that
industrial activity has recently picked up, Commerzbank analyst
Ralph Solveen said.
However, to some extent the increase is probably due to one-off
effects, which are likely to push up output figures as well. "We
are likely to see a significant setback in September," Solveen
said.
On a yearly basis, growth in factory orders accelerated to 7.8
percent from 5.4 percent in July.
Further, data showed that manufacturing turnover increased 3.6
percent in August from July, when it dropped 0.1 percent.
According to the Purchasing Managers' survey, Germany's
manufacturing sector expanded the most in over six years in
September. Manufacturing orders grew at the fastest pace since
June, underpinned by a steep increase in demand from abroad and
from Asian markets in particular, IHS Markit said.
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