German factory orders jump 1.3% in September

  • by Ofeed Team
  • November 6, 2019, 15:42 AM
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German factory orders rose more than expected in September, thanks to strong domestic demand, giving some breathing space for manufacturing companies in Europe's largest economy.

Manufactured goods contracts in Germany rose 1.3 percent compared to the previous month. Analysts had predicted a 0.1 percent rise.

Demand for capital goods increased 3.1 percent. Orders from abroad increased 1.1 percent, while domestic contracts grew 1.6 percent.

This increase is due to a marked improvement in investment and consumer goods, in addition to increasing demand from outside the euro zone.

The unexpectedly strong data showed cautious optimism in the Ministry of Economy that German industry was off to a promising start to the fourth quarter.

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However, on a year-on-year basis, orders fell 5.4 percent from 2018, indicating that momentum during this period continued to weaken, as well as expectations that Germany would enter a technical recession during the last quarter, and the labor market began to deteriorate.

In the eurozone, a report showed that the manufacturing sector inside the Eurozone hovering around its weakest level in seven years, due to many factors like job loss acceleration and decreasing order books.

Growth forecasts by the government's council of economic Advisers are expected to fall when it is presented to Chancellor Angela Merkel later on Wednesday.

Meanwhile, the euro rose against the U.S dollar by 0.12 percent at $1.1084.

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