Rebound likely in German's September orders

German's month on month factory orders for September is likely to releas today. The factory orders showing poor performance since July. 

The factory orders posted a negative growth of 1.8% mom in August and 2.2% in July. Some reports argue this negative growth in the factory orders is due to holiday effects, but a similar pattern has been seen in previous years also, notes Societe Generale. 

"While domestic orders could rebound more strongly following the regular volatility in this series and continued resilience in the domestic sector, weare more concerned with foreign orders which likely will remain weak. The September data is also unlikely to fully capture the fallout from the VW scandal, and therefore the orders of motor vehicles is expected to take a bigger hit as of the October data", says Societe Generale.