German factory orders rose for a second month, adding to signs that Europe’s largest economy will continue expanding at a solid pace.
Orders, adjusted for seasonal swings and inflation, increased 1% in September after an upwardly revised surge of 4.1% in August, data from the Economy Ministry in Berlin showed on Monday. The typically volatile reading compares with a median estimate for a 1.1% decline in a Bloomberg survey. Demand was up 9.5% from the previous year.
The Europe’s largest economy is on track for continued robust growth in the third quarter, with manufacturing set to remain a “pillar” of the upswing thanks to “vigorous” export demand and an “excellent” level of orders.
Strong momentum in the 19-nation euro region and the European Central Bank’s decision to extend asset purchases into 2018 will also support the economy.
“Order activity increased further from an already high level,” the Economy Ministry said in a statement. “Improved business confidence suggests that the upswing in manufacturing will continue.”
September orders were bolstered by a 14.1% jump in demand for investment goods from the euro area, according to the report. Domestic orders slipped 0.1% from the previous month while export demand was up 1.7%. Bulk orders were below average.
A Purchasing Managers’ Index for manufacturing and services also released today is set to show activity in October expanded at one of the fastest rates since 2011. The Economy Ministry will publish data on industrial production on Tuesday.