German Factory Orders Surge as Economy Sustains Strong MomentumBy
Demand up 3.6% in August vs economists estimate of 0.7% gain
Economy Ministry sees solid manufacturing recovery continuing
German factory orders rebounded in August in a sign that Europe’s largest economy is set to sustain its robust pace of growth.
Orders, adjusted for seasonal swings and inflation, rose 3.6 percent in August after a revised decline of 0.4 percent in July, data from the Economy Ministry in Berlin showed on Friday. That’s the biggest increase since December. The typically volatile reading compares with a median estimate for a 0.7 percent gain in a Bloomberg survey. Demand was up 7.8 percent from the previous year.
German exporters are benefiting from a global recovery. The 19-nation euro area is set to expand this year at the fastest rate in a decade, with factories scrambling to add jobs to keep up with burgeoning order books. The Bundesbank said the German economy will continue on its course of strong growth in the third quarter, albeit with slightly less momentum than in the first half of the year.
“Order activity has increased once again from an already high level,” the Economy Ministry said in a statement. Solid business confidence “confirms this positive picture. The solid upswing in manufacturing should thus continue.”
Domestic orders rose 2.7 percent in August from the previous month, according to the report. Export orders increased 4.3 percent. Bulk orders were below average, the ministry said.
It will publish industrial-production data on Monday. A Purchasing Managers’ Index released on Wednesday showed that German economic activity accelerated in September.
— With assistance by Andre Tartar, and Kristian Siedenburg