German factories seem to have climbed out of a tough spot, with new orders growing by 1 per cent in August, compared to July, well above the (upwardly revised) 0.3 per cent climb seen in the previous month, and comfortably ahead of forecasts. This was the brightest monthly reading since March.
On an annual basis, orders expanded by 2.1 per cent, casting aside a decline of 0.6 per cent in July and also comfortably beating economists’ predictions.
In August 2016, domestic orders increased by 2.6%, while foreign orders decreased by 0.2% on the previous month. New orders from the euro area were up 4.1% on the previous month, while new orders from other countries decreased by 2.8% compared to July 2016.
Economists at Pantheon Macroeconomics said the pick-up was a “much welcome upside surprise” but that “more good news is needed to offset recent weakness”.