Order growth at German factories undershoots forecasts in September
By Alexander Bueso
Date: Thursday 04 Nov 2021
(Sharecast News) - Order growth in German factories undershot economists' forecasts in September, despite solid readings for auto and capital goods orders.
According to the Federal Office of Statistics, in seasonally and calendar-adjusted terms, new manufacturing orders grew at a month-on-month pace of 1.3% (consensus: 1.8%).
Furthermore, August's tally was revised down to show a drop of 8.8% on the month, against a preliminary reading of -7.7%.
"Overall, this is a tepid rebound after the crash midway through Q3, leaving new orders some 7.5% below its previous high in July, though also still significantly above its level before the virus, by 8.6%," said Claus Vistesen, chief euro area economist at Pantheon Macroeconomics.
Domestic orders were weak in September, falling by 5.9%, while those from other euro area countries dropped by 7.3%, although orders from outside the single currency bloc jumped by 14.9%.
As Vistesen had pointed out, when compared to February 2020, the month before Covid-19 restrictions were imposed, orders were up by 8.6% in calendar adjusted terms, and 10.4% higher versus a year earlier.
Orders for motor vehicles increased by 9.6% on the month in September and those for capital goods by 3.9%, whereas orders for intermediate goods fell by 2.0% and those for consumer goods by 1.7%.
Nevertheless, Vistesen highlighted the boost from major orders of mechanical engineering goods, which he said drove the total up for that chapter by 12.2%, as well total new orders, whereas without them, orders for mechanical engineering goods would have risen by 6.7%.
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