German Machinery Orders Increased for Second Month in October
German plant and machinery orders rose for a second month in October, driven by demand from countries outside the 17-nation euro region, the VDMA machine- makers’ association said.
Orders, adjusted for inflation, gained 7 percent from a year earlier after advancing an annual 11 percent in September, the Frankfurt-based VDMA said in an e-mailed statement today. Foreign orders rose 11 percent, with euro-area demand up 3 percent and orders from outside the currency bloc up 14 percent. Domestic orders dropped 1 percent after plunging in July, August and September.
“Those declines weren’t representative of the overall condition of the German economy,” said Olaf Wortmann, an economist at VDMA. “The slight drop in October paints a more accurate picture of domestic demand.”
German business confidence unexpectedly rose from the lowest in 2 1/2 years in November after growth slowed less than economists forecast in the third quarter. At the same time, the euro-area economy, Germany’s biggest export market, slipped into recession for the second time in four years as governments cut spending in an attempt to calm the sovereign debt crisis.
VDMA in September predicted order growth of 2 percent in 2012 and 2013. It will present new forecasts on Dec. 13.
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