Factory orders in Germany rose in October at the fastest pace in over two years, according to the data from the federal statistics office Destatis. The data suggest that the industrial sector will support growth in Europe’s largest economy in coming months. The industrial orders grew by 4.9% on month-on-month basis, which is the sharpest jump since July 2014 and well above the median forecast of economists, who had expected 0.6% increase. The data shows a pickup in momentum in the fourth quarter, but according to many analysts, the industrial output is not the growth driver that it used to be.
The domestic demand grows by 6.3%, while foreign orders increased by 3.9%, despite that those from the Eurozone countries stagnated.
There is sufficient growth in orders of investment goods such as machinery, which increased by 7.2%. The demand for cars and vehicle parts was up 10.5 percent. The benefit from increased demand retrieve and factories for consumer and intermediate goods.
The data for September were revised upwards, the decline was not 0.6%, as was the initial estimate, but 0.3%.
The report adds to signs that Germany’s economy is gathering pace after a slowdown in the third quarter. Business sentiment held at the highest level in more than two years in November, while unemployment remained at a record low. The Bundesbank predicts growth will accelerate considerably in the final three months of the year.
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