Financial News: German Factory Orders Log Unexpected Growth

German Factory Orders Log Unexpected Growth

11/06/2023 - 05:28:00 (RTTNews)

(RTTNews) - Germany's factory orders grew unexpectedly at the end of the third quarter underpinned by foreign demand, official data from Destatis showed on Monday.

However, reinforcing fears of recession, Purchasing Managers' survey results suggested that the private sector contracted for the fourth straight month in October reflecting declines in both manufacturing production and services activity.

Data from Destatis showed that new orders climbed 0.2 percent on a monthly basis in September, confounding expectations for a fall of 1.0 percent. The statistical office revised down the August growth rate to 1.9 percent from 3.9 percent due to incorrectly reported data in the manufacture of computer, electronic and optical products' sector.

Excluding large orders, new orders decreased 2.2 percent from the previous month. Foreign orders registered a monthly growth of 4.2 percent, with orders from the euro area climbing 6.2 percent and that from the rest of the world up 2.9 percent. By contrast, domestic orders declined 5.9 percent.

New orders in manufacture of machinery and equipment logged a monthly growth of 8.5 percent. The manufacture of fabricated metal products and basic metals moved up 8.5 percent and 8.7 percent, respectively.

On the other hand, orders in the automotive industry slid 2.5 percent and that in the manufacture of other transport equipment plunged 9.7 percent.

At the same time, the annual decline in overall new orders slowed to 4.3 percent from 6.3 percent in the in August.

Further, manufacturing turnover slid 1.6 percent on month in September, following a 0.5 percent decrease in August.

The final HCOB composite output index fell to 45.9 in October from 46.4 in September, S&P Global said. The flash score was 45.8. The indicator had remained in sub-50 contraction territory for a fourth consecutive month.

At 48.2, the services Purchasing Managers' Index was down from 50.3 in September and the preliminary reading of 48.0.

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