German industrial orders surge as autos bottleneck clears

Reuters  |  BERLIN 

(Reuters) - German industrial orders rebounded in August as an auto sector cleared and deals with customers outside picked up sharply, and the ministry said should power ahead in the fourth quarter.

Contracts for German goods rose by 2.0 percent after a fall of 0.9 percent in the previous month, the ministry said on Friday. A poll of analysts had predicted a rise of 0.5 percent in August.

"The strong increase in orders from non-European countries proves that German remain in demand worldwide, regardless of trade conflicts," the ministry said in a statement.

It said the rise was helped by a clearing in the auto sector that had stemmed from the introduction of a new pollution standard - the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) - for which some German needed to gain regulatory clearance.

With that hurdle overcome, "the positive economic trend in the industrial sector should resume in the fourth quarter," the ministry said.

Friday's stronger-than-expected data followed a solid confidence reading from Europe's largest last week.

The Ifo economic institute's survey showed morale held steady in in September, propped up by consumer spending and construction, pointing to further growth even if a uncertain global economic outlook worsened.

"We don't need to worry about the German economy, even if in 2018 it looks like there will be a slower rate of growth than originally expected," said Thomas Gitzel, at

The government has forecast 2.3 percent growth this year and 2.1 percent for 2019.

(Writing by Paul Carrel; Editing by and John Stonestreet)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, October 05 2018. 13:00 IST