German Factory Orders Unexpectedly Rise as Domestic Demand Gains
German Factory Orders Unexpectedly Rise as Domestic Demand Gains
(Bloomberg) -- German factory orders unexpectedly rose for a second month in September in a sign that Europe’s largest economy is poised to regain growth momentum toward the end of the year.
Orders gained 0.3 percent from the previous month, compared with economists’ predictions for a 0.5 percent decline. It’s only the third monthly increase this year. Orders slid 2.2 percent on the year.
The Bundesbank has said underlying momentum in the economy remains intact even though growth probably stalled in the third quarter, hit by U.S. protectionism and new emissions rules that auto makers have struggled with.
| Domestic orders | +2.8% |
| Export orders | -1.4% |
| Basic-goods orders | -1.7% |
| Investment-goods orders | +1.4% |
| -- Euro-area investment goods orders | +7.8% |
| Consumer-goods demand | +2.1% |
The Economy Ministry said in a statement that the holdup in the auto industry is being slowly resolved, and the signs are that manufacturing growth will regain strength in the fourth quarter.
The health of the German economy is key to the prospects for the 19-nation euro area, which is experiencing a slowdown just as the European Central Bank prepares to end its bond-buying stimulus program. Officials hold their next policy meeting on Dec. 13.
To contact the reporter on this story: Piotr Skolimowski in Frankfurt at pskolimowski@bloomberg.net
To contact the editor responsible for this story: Paul Gordon at pgordon6@bloomberg.net
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