German industrial orders surprise with Oct leap


FRANKFURT AM MAIN: Industrial orders in Germany jumped sharply in October, official data showed Tuesday, stoking hopes of a strong final quarter for Europe’s largest economy.

The volume of orders in October was 4.9 percent higher than the previous month, correcting for price, seasonal and calendar effects, the federal statistics office Destatis said in a statement.

With a 6.3-percent increase in orders, domestic demand rose more sharply than foreign orders, which grew by 3.9 percent.

The growth in foreign orders came entirely from non-eurozone countries, with orders from Germany’s eurozone neighbours showing zero growth.

Looking sector-by-sector, capital goods firms reported the biggest increase in orders, at 7.2 percent, while producer goods makers saw growth of 1.8 and consumer goods 0.5 percent.

Excluding large contracts—which can distort results—from the calculation would still show overall growth in orders of 4.3 percent, Destatis said.

Revised figures for September released by the statistics authority showed that orders had fallen by 0.3 percent, rather than the 0.6 percent reported in preliminary results.

“The results mean a good start to the final quarter,” the economy ministry in Berlin said in a statement, while warning that monthly data can be volatile.

Comparing the September-October period with July-August, industrial orders grew by 2.5 percent, the ministry noted, with comfortable increases in both eurozone and non-eurozone orders as well as in all three sectors of capital, producer and consumer goods.

“A slightly rising trend in demand and improved business confidence point overall to a revival in industrial activity” towards the end of 2016, the ministry went on.

German business confidence rose in a regular Ifo institute survey for October, while the ZEW investor survey also brightened in November.


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