German factory orders beat expectations in October

Germany’s factory orders beat forecast in October, figures released on Friday showed.

According to Destatis, Germany’s federal statistical office, factory orders gained 1.8% month-on-month in October, snapping a three-month losing streak.

Analysts had expected orders to grow 1.2% in the period after an upwardly revised 0.7%fall in August.

Foreign orders rose 1.8% month-to-month, helped by both gains in Eurozone and non-Eurozone orders, and domestic orders rose 1.7%.

On a non-seasonally adjusted year-on-year basis, orders declined 1.4% compared with an upwardly revised 0.7% fall in the previous month and analysts’ expectations for a 2.5% fall.

“Assuming no further change over the quarter, new orders will rise 0.6% quarter-on-quarter in the fourth quarter, up from a 2.7% plunge in the third quarter, but this estimate is very uncertain also slightly too pessimistic,” said analysts at Pantheon Macroeconomics.

“We think new orders will rise in the region of 1.5% quarter-on-quarter in the fourth quarter.”