German factory orders rose for a fourth month in the latest sign that the country’s industry-heavy economy is faring better than its services-focused peers in recovering from the pandemic.
Demand for goods from Europe’s largest economy gained 4.5%, beating economists’ estimates for a 2.8% increase. Export orders delivered a particular boost, with investment goods from the euro area up more than 20%.
“The catch-up in factory orders continues at remarkable speed,” the Economy Ministry said. “It’s supported primarily by demand from abroad,” with business confidence and declining need for state wage support also offering promising signs of recovery.
German industry has seen a rebound in industry in recent months, with export orders underpinning solid domestic demand and companies expecting further improvement ahead. In September, the country was responsible for around half of all gains in euro-area manufacturing, according to a separate report last week.
The Bundesbank expects Germany’s economic recovery to progress during the rest of the year, albeit at a slower pace, and has argued in favor of continued fiscal support.
Services providers in the euro zone are struggling as resurgent virus infections trigger new restrictions. Tourism-reliant southern European countries are especially hard hit, with surveys indicating shrinking output.
— With assistance by Harumi Ichikura, and Kristian Siedenburg