German Factory Orders Rise

Strong domestic demand and from outside the single currency bloc boosted German factory orders last month. Total manufacturing orders grew for a third consecutive month in October, recording an increase of 0.5%, according to the ministry of finance, Webfg reported. According to consensus, orders were expected to be down by 0.2%. September’s reading was also revised higher, from a preliminary print of 1.0% to up by 1.2%. Both domestic and foreign orders were higher, rising by 0.4% and 0.5%, respectively, in comparison to September. Orders from the euroland declined by 1.2% while those from overseas jumped by 1.6%. By sub-sectors, production of intermediate goods fell by 0.4%, while those of capital goods grew by 0.9%. Consumer goods orders increased by 0.6%. Commenting on Wednesday’s data, Iaroslav Shelepko and Tomasz Wieladek at Barclays Research said: “The combination of foreign trade growth fueled by the global economic recovery and improving domestic demand is likely to help manufacturing production to remain around the highest levels on record.”