German factory orders unexpectedly edged higher in September

GERMAN factory orders unexpectedly rose again in September – offering further hope that the manufacturing woes gripping Europe’s biggest economy may be easing.

Monday’s (Nov 6) data showing a 0.2 per cent increase in demand represents a second straight monthly gain and exceed analysts’ expectations for a 1.5 per cent drop. August’s advance, however, was revised down by about half, to 1.9 per cent.

The statistics agency said September’s result came thanks to a 4.2 per cent jump in foreign orders that offset a 5.9 per cent slump at home. Over the third quarter as a whole, there was a decline of 3.9 per cent.

Germany’s economy shrank 0.1 per cent during that period, putting it on track for a recession as analysts anticipate another contraction of the same size in the final three months of the year.

A survey of purchasing managers published last month showed production across the manufacturing sector remained under pressure from a sustained downturn in new orders. The weakness is weighing on the entire euro zone.

Still, politicians and policymakers reject suggestions that Germany is once again the “sick man” of Europe, with Bundesbank President Joachim Nagel saying this month that he anticipates a return to growth in 2024. BLOOMBERG