Data published Monday point to a resilient growth pace in the German economy, analysts said, following an unexpectedly strong reading in manufacturing orders for the month of September.
Germany is Europe's largest economy, meaning that a robust Germany should bode well--albeit to varying degrees--for its European trading partners.
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The country's economics ministry said Monday that new orders in manufacturing increased by 1.0% on the month in September. This beat analysts' expectations in a Wall Street Journal poll last week of a 1.3% decline.
Orders in August were also revised upward to show growth of 4.1% after an originally-reported 3.6% rise.
In September, foreign orders rose 1.7% while domestic orders slid 0.1%. Foreign orders from within the eurozone grew by 6.3%, the data showed.
"For the coming months, this signals another sharp increase in industrial production," said Commerzbank in a note. However, it cautioned that September data, due out Tuesday, were still expected to decline.
Industrial-output data suggest that the German economy is due to expand in the fourth quarter at a similar rate to the pace this year, said Commerzbank, adding that "next year's growth rate will also have a 2 before the decimal point."
The German economy grew by 0.6% in quarterly terms in the second quarter.
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(END) Dow Jones Newswires
November 06, 2017 04:47 ET (09:47 GMT)