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Germany manufacturing orders rise unexpectedly in September

Germany manufacturing orders rise unexpectedly in September

Mubasher: German manufacturing orders increased slightly in September on the back of higher demand both domestically and from other eurozone countries, data released on Tuesday showed.

The rise came in spite of a sharp drop in orders from outside the euro area, the Federal Statistical Office said, noting that total manufacturing orders grew 0.3% in September, building on August's 2.5% gain.

Economists polled by The Wall Street Journal (WSJ) had expected Germany’s manufacturing order to fall by 0.6% during the month.

The August gain was revised higher than previously reported by the statistical office.

Meanwhile, domestic orders jumped 2.8% in September from the prior month, whereas demand from other eurozone countries rose 2.4%, signaling a pickup in investments in the eurozone.

However, demand from outside the euro currency bloc fell 3.7% in September from the previous month, the report showed, noting that German manufacturing orders, taking account of calendar effects, were down 2.2% from September 2017.

It is worth noting that on Monday, Germany's VDMA industry group, which represents over 3,200 mostly small and midsize firms, had said that trade sanctions and growing protectionist threats had unsettled many clients and firms.