German factory orders rose by 2.0% in October, surpassing the previous month’s revised increase of 1.1% in September. This stronger-than-expected performance is a positive indicator for the German manufacturing sector.
Even after excluding large orders, new factory orders were up 0.5% month-on-month in October. However, when looking at the less volatile three-month comparison and excluding large orders, new orders showed a slight decline of 0.1%.
The significant rise in October is largely driven by a substantial order in the “Other Vehicle Construction” sector, which includes aircraft, ships, trains, and military vehicles. This segment experienced an 87.1% increase in orders compared to September.
For forex traders, these figures highlight mixed signals from Germany’s factory sector. While headline factory orders show robust growth, underlying demand excluding large orders is subdued, and the three-month trend points to a minor contraction. Watching how these manufacturing trends evolve could be important for EUR currency movements, given Germany’s role as the eurozone’s largest economy.
Original Source: Justin Low of investinglive.com
