German factory orders rose unexpectedly in October 2017 thanks to strong demand from non-Eurozone countries, according to the data from the local Ministry of Economy. The data suggests that the industrial sector in the largest European economy is likely to gain further strength in the coming months.
The growth of factory orders in Germany amounted to 0.5% on a monthly basis in October. This represents a slowdown compared to September, when the increase was 1.2%. Still, the value is a pleasant surprise because expectations in the Reuters study were down 0.3%.
Destatis noted as well that for the third month in a row, German factories received more orders than they had before the global financial crisis that started in late 2007.
The orders from abroad grew by 0.5% and those from non-currency alliances rose by 1.6%. On the other hand, the Eurozone orders recorded a decline of 1.2%. From the German market, the factory orders increased by 0.4%.
The data underline Germany’s strong economic performance this year that has been driven by steady growth at many major trading partners.
The economists have recently increased their growth forecasts for the German economy, with surveys showing business confidence at a record high and promising economic data. Its third-quarter growth rate of 0.8 percent, compared with the previous three-month period, exceeded expectations.