Eurozone surge boosts German industrial orders in October

[FRANKFURT] Growing demand from eurozone neighbours boosted industrial orders in Germany in October, official data showed Thursday, in a hint at recovery from a third-quarter slowdown.

Firms reported a 0.3 per cent month-on-month increase in new contracts compared with September, the federal statistics authority Destatis said.

But the more detailed picture for orders was mixed, with domestic demand falling 3.2 per cent while foreign orders grew 2.9 per cent.

A surge in contracts from Germany's neighbours in the 19-nation eurozone accounted for much of the boost to new business, adding 7.3 per cent, compared with 0.3 per cent for the rest of the world.

Looking to different manufacturing sectors, companies making producer goods and capital goods both reported slightly increased orders, while demand fell at consumer goods firms.

Destatis also revised down its figure for industrial orders growth in September, to 0.1 per cent.

The month was the end of a difficult quarter for German industry, sapped by a slew of one-off factors including low water in the vital Rhine waterway and new emissions tests slowing the mighty car sector.

"Progress is visible" in the October figures "although even in the beginning of the fourth quarter, the effect of the WLTP (emissions test) problems on the car industry is still very visible," the economy ministry said in a statement.

AFP