German factory orders fell more than economists (GRIORTMM) forecast in October, signaling an uneven recovery in Europe’s largest economy.
Orders, adjusted for seasonal swings and inflation, slid 2.2 percent from September, when they rose a revised 3.1 percent, the Economy Ministry in Berlin said today.
Economists forecast a decline of 1 percent, according to the median of 40 estimates in a Bloomberg survey. Orders advanced 1.9 percent from a year ago when adjusted for the number of working days.
Germany’s economic expansion has been slowed by the 17-nation euro area’s struggle to sustain a recovery from its longest-ever recession.
Domestic demand accounted for all of German growth in the third quarter. The currency bloc, Germany’s biggest trading partner, will shrink 0.4 percent this year before expanding 1.1 percent in 2014, the European Central Bank forecast yesterday.
“Over the coming months you are unlikely to see a dramatic acceleration in the industrial sector in Germany or in the euro zone,” Ben May, European economist at Capital Economics Ltd. in London, said before the report.
“In that sense, we don’t expect it to give a major boost to the economy.”
Foreign orders fell 2.3 percent in October, while those from within the country dropped 2 percent, today’s report showed. Demand from the euro area declined 1.3 percent.
‘Big Swings’
Today’s data reflect “big swings” in bulk orders, which depressed investment-goods orders, the ministry said. Demand plunged 5.2 percent, while orders for basic goods rose 2.2 percent and increased 0.6 percent for consumer goods.
“The trend in demand for industrial goods is still pointing upwards,” the ministry said. “That indicates a continued positive development in industry for the coming months.”
The nation’s economy expanded 0.3 percent last quarter, after expanding 0.7 percent in the three months ended June. For the final quarter of this year, the Bundesbank forecasts a pickup.
The Frankfurt-based institution today raised its estimate for growth this year to as much as 0.5 percent, up from its June prediction of 0.3 percent. It increased its outlook for 2014 to 1.7 percent from 1.5 percent.
Germany will continue to register a “steady even if not spectacular growth” in 2014, said May. “In coming quarters, it will outperform the euro zone but it won’t be a dramatic expansion by any stretch of the imagination.”
The nation may be on the verge of forming a new government, more than two months after Sept. 22 elections, as Chancellor Angela Merkel’s Christian Democratic bloc struck a coalition agreement with the Social Democrats.
The deal, which includes a national minimum wage and spending on pensions and infrastructure, risks killing jobs, according to the Berlin-based DIW economic institute.
Unemployment (GRUECHNG) rose for a fourth month in November, when the number of people out of work climbed a seasonally-adjusted 10,000 to 2.985 million.
bloomberg.com
Orders, adjusted for seasonal swings and inflation, slid 2.2 percent from September, when they rose a revised 3.1 percent, the Economy Ministry in Berlin said today.
Economists forecast a decline of 1 percent, according to the median of 40 estimates in a Bloomberg survey. Orders advanced 1.9 percent from a year ago when adjusted for the number of working days.
Germany’s economic expansion has been slowed by the 17-nation euro area’s struggle to sustain a recovery from its longest-ever recession.
Domestic demand accounted for all of German growth in the third quarter. The currency bloc, Germany’s biggest trading partner, will shrink 0.4 percent this year before expanding 1.1 percent in 2014, the European Central Bank forecast yesterday.
“Over the coming months you are unlikely to see a dramatic acceleration in the industrial sector in Germany or in the euro zone,” Ben May, European economist at Capital Economics Ltd. in London, said before the report.
“In that sense, we don’t expect it to give a major boost to the economy.”
Foreign orders fell 2.3 percent in October, while those from within the country dropped 2 percent, today’s report showed. Demand from the euro area declined 1.3 percent.
‘Big Swings’
Today’s data reflect “big swings” in bulk orders, which depressed investment-goods orders, the ministry said. Demand plunged 5.2 percent, while orders for basic goods rose 2.2 percent and increased 0.6 percent for consumer goods.
“The trend in demand for industrial goods is still pointing upwards,” the ministry said. “That indicates a continued positive development in industry for the coming months.”
The nation’s economy expanded 0.3 percent last quarter, after expanding 0.7 percent in the three months ended June. For the final quarter of this year, the Bundesbank forecasts a pickup.
The Frankfurt-based institution today raised its estimate for growth this year to as much as 0.5 percent, up from its June prediction of 0.3 percent. It increased its outlook for 2014 to 1.7 percent from 1.5 percent.
Germany will continue to register a “steady even if not spectacular growth” in 2014, said May. “In coming quarters, it will outperform the euro zone but it won’t be a dramatic expansion by any stretch of the imagination.”
The nation may be on the verge of forming a new government, more than two months after Sept. 22 elections, as Chancellor Angela Merkel’s Christian Democratic bloc struck a coalition agreement with the Social Democrats.
The deal, which includes a national minimum wage and spending on pensions and infrastructure, risks killing jobs, according to the Berlin-based DIW economic institute.
Unemployment (GRUECHNG) rose for a fourth month in November, when the number of people out of work climbed a seasonally-adjusted 10,000 to 2.985 million.
bloomberg.com
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