German Factory Orders Rose for Fifth Month in September
(Bloomberg) -- German factory orders extended their recovery in September, albeit at a slower pace, suggesting industry will support Europe’s largest economy through the second wave of the pandemic.
Demand rose 0.5%, less than economists expected. The Economy Ministry said the fifth consecutive gain was broad-based with stronger orders from within Germany and outside the euro-area, adding that demand had nearly reached levels recorded before the crisis.
German manufacturing has proved a stronghold in recent weeks, benefiting from pent-up demand at home and economic rebounds in other parts of the world. While businesses are less affected by new restrictions than the country’s many hospitality providers, resurgent coronavirus infections have significantly darkened the outlook.
The Bundesbank predicted last week that Germany’s recovery would continue at a “considerably slower” pace in the current quarter, after the economy staged a sharp rebound from a record slump in the first half. Economy Minister Peter Altmaier said Friday the government predicts the economy will contract more than 5% this year.
Another aid program worth 10 billion euros ($11.7 billion) is already in the pipeline for companies shuttered by a month-long, partial lockdown. With many euro-area economies seeing more virus cases and tougher restrictions than Germany, the European Central Bank has already signaled more monetary support in December.
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