German Manufacturing Orders Surge in August

By Nina Adam Features Dow Jones Newswires

Orders for Germany's important manufacturing sector surged in August, more than compensating for July's unexpected decline, reflecting a solid upswing in the sector.

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The German economics ministry said Friday that total manufacturing orders increased 3.6% compared with July, adjusted for seasonal swings and calendar effects.

Economists polled by The Wall Street Journal had forecast a 0.9% rise.

Strong orders books, sound business sentiment and a favorable development in corporate sales paint a "positive picture," the ministry said. "The solid upswing in the manufacturing sector is thus likely to continue," it added.

Orders from outside the eurozone remained strong in August, surging 7.7% compared with July, while eurozone orders registered their third consecutive monthly decline.

Domestic orders increased 2.7% on the month, following a 1.4% drop in July.

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Demand for intermediate goods and consumer goods was particularly strong in August, as the share of bulk orders was below average, according to the ministry.

Total orders were up 7.8% compared with August 2016, taking account of calendar effects.

Write to Nina Adam at nina.adam@wsj.com

(END) Dow Jones Newswires

October 06, 2017 02:40 ET (06:40 GMT)