Germany’s factory orders rise above expectations in August

Germany’s price-adjusted new factory orders rose in August, according to the Federal Statistical Office, Destatis. Seasonally adjusted, factory orders grew 1 percent in sequential terms, as compared with consensus expectations of a rise of 0.2 percent. Meanwhile, the July data was upwardly revised. Factory orders rose 0.3 percent in July as compared with June 2016, as compared with the initial estimate of a rise of 0.2 percent.

Price-adjusted new orders without major orders in manufacturing rose 1.6 percent seasonally adjusted in August on a month-on-month basis. Domestic orders rose 2.6 percent in the month, whereas foreign orders dropped 0.2 percent sequentially. New orders from the euro zone rose 4.1 percent sequentially, whereas new orders from other nations dropped 2.8 percent as compared to July 2016.

The manufacturers of intermediate goods rose 1.7 percent month-on-month, whereas manufacturers of capital goods grew 0.3 percent sequentially. Meanwhile, for consumer goods, new orders rose 2.9 percent in August.

The price-adjusted turnover in manufacturing rose 4.1 percent seasonally adjusted in the month. This was the biggest rise since 1991. The July 2016, the corrected print indicates a rise of 1.5 percent from June 2016, thereby confirming the  provisional result that was published in July, said Destatis.