German factory orders rise 1.1pc in September, first monthly gain since April

(Sharecast News) - German factory orders rose 1.1% month-on-month in September, according to the Federal Statistical Office, slightly ahead of market estimates of 1.0% growth and swinging from a downwardly revised 0.4% drop in August. September's increase was the first since April, driven by rises in electrical equipment manufacturing, up 9.5%, aircraft, ships, trains, and military vehicles, and the automotive sector, which were up 7.5% and 3.2%, respectively. Excluding large-scale contracts, overall orders expanded 1.9%.

By contrast, orders for metal products plunged 19.0% following large orders in August, with new orders in metal production and processing also down 5.6%.

By category, demand rose 6.2% for consumer goods and 1.4% for intermediate goods, while capital goods orders held steady.

Foreign orders grew 3.5%, lifted by gains from both the Euro area and non-Euro area, up 2.% and 4.3%, respectively, but domestic orders slipped 2.5% month-on-month.

For the third quarter, factory orders declined 3.3% in Q3, or 1.5% when excluding large contracts, pointing to persistent weakness in industrial activity.





Reporting by Iain Gilbert at Sharecast.com