Germany: Stronger-than-Expected Rebound in Industrial Orders
Industrial orders in Germany experienced a more significant rebound than anticipated in September following a decline in August, according to figures released on Wednesday.
The key indicator for the manufacturing sector—a cornerstone of the German economy—rose by 4.2% month-on-month after a revised drop of 5.4% in August, which followed a 3.9% increase in July, based on data from the statistical institute.
This surge surpasses analysts’ expectations of a 1.3% increase in September, remarked economist Jens-Oliver Niklasch. He stated, “This substantial increase is a pleasant surprise that finally offers hope for a recovery in the manufacturing industry.”
When excluding large orders, which tend to be volatile month-to-month, the overall order volume rose by 2.2% compared to August.
Over a three-month period, the volume of orders in the third quarter of 2024 was 4.2% higher than in the previous quarter; however, it declined by 0.6% when large orders were excluded.
Germany’s gross domestic product (GDP) grew by 0.2% in the third quarter, defying forecasts that suggested the leading European economy would enter recession, according to an initial estimate published at the end of October.
Since October, the government has revised its projection for annual GDP contraction to 0.2%, down from the 0.3% increase predicted in the spring.
