ZCZC
BCN-47
GERMANY-ECONOMY-INDICATOR-INDUSTRY
German industrial orders bounce back in August
FRANKFURT AM MAIN, Oct 5, 2018 (BSS/AFP) – New orders for German
industrial firms booked a strong rebound in August from a slip in July,
official data showed Friday, brightening the outlook for the second half of
the year.
Companies reported a 2.0-percent month-on-month increase in new business,
adjusting for price, seasonal and calendar effects, federal statistics
authority Destatis said in a statement.
That was well above the 0.6-percent boost forecast by analysts.
Orders data are closely followed by economists as they give a forward look
at the performance of the industrial sector, the beating heart of Europe’s
largest economy.
This year, the figures have varied sharply from month to month as
Washington’s calls to rejig the world trading order under President Donald
Trump have surged or appeared temporarily tamed.
As well as his direct confrontation with the EU, Trump’s tit-for-tat trade
battle with China could also have knock-on effects for Germany — although he
has buried the hatchet with neighbours Canada and Mexico for now with a
renegotiated trade accord.
Looking in more detail at the German figures, new business from domestic
customers grew 2.9 percent month-on-month, but foreign demand swelled twice
as fast, at 5.8 percent.
Orders from Berlin’s neighbours in the 19-nation euro single currency
area fell 2.2 percent, but business with the rest of the world added 11.1
percent.
In different industrial sectors, producer goods firms’ contracts were
almost flat, while capital goods makers added 3.4 percent and consumer goods
companies 2.1 percent.
Overall, “the German economy is still defying trade tensions,” ING Diba
bank economist Carsten Brzeski commented, combining with other data to
suggest “fears of a slowdown are overdone”.
“To the contrary, positive surprises should not be ruled out,” he added.
BSS/AFP/HR/1440