Germany's Industrial Orders Bounced Back in August
Production orders in Germany recovered in August amid increasing external demand. The Federal Statistics Office reported, that German industrial orders increased by 2% mom In August, compared with a decline of -0.9% in the previous month. Economists had forecast a growth rate of 0.5%.
On an annualized basis, production orders fell by -2.1% in August after a less significant decrease of -0.8% in July. Economists had predicted a more significant decline in the index by -3%.
Orders data are closely watched, as they give a forward look at the performance of the industrial sector, one of the main part of Europe's largest economy. The German government has forecast 2.3% growth this year and 2.1% for 2019. Meanwhile, the BdB banking association (Association of German Banks) lowered German GDP growth forecasts to 1.9% for 2018 and 1.8% for 2019.