German companies reported a 0.3 percent month-on-month gain in new orders for September, after price, seasonal and calendar effects are adjusted for
Frankfurt am Main (AFP) - German industrial companies booked a rise in orders in September, official data showed Tuesday, beating expectations as a rebound in August also proved stronger than previously announced.
Companies reported a 0.3 percent month-on-month gain in new orders for September, after price, seasonal and calendar effects were adjusted for, federal statistics authority Destatis said in a statement.
The data strongly outperformed a 0.5 percent drop predicted by analysts polled by Factset financial services.
In addition, Destatis revised upwards its data for August, saying orders were up 2.5 percent compared to a month earlier, instead of the previously announced 2.0 percent.
Orders data are closely followed by economists as they give a forward look at the performance of the industrial sector, the beating heart of Europe’s largest economy.
This year, the figures have varied sharply from month to month as US President Donald Trump has left trading partners unsettled with his multi-front commerce battles.
“Today’s industrial orders bring welcome relief in a period of increasing pessimism,” wrote Carsten Brzeski, chief economist at ING Germany.
He noted that 2018 had so far been the worst year in a decade for industrial orders in Germany.
Nevertheless, “order books are still richly filled and near-term production growth is assured,” he added.
“If car sales were to pick up again once the adjustment to the new emission norms has been fully implemented, limiting one-off factors should also disappear.”
In September, German domestic demand propped up home-grown companies’ new businesses.
Domestic orders were up 2.8 percent for the month while orders from abroad fell 1.4 percent.
In terms of foreign orders, demand from fellow eurozone nations rose 2.4 percent while that from elsewhere fell 3.7 percent.