German factory orders rise strongly in October in promising sign for 4th quarter

German factory orders rose strongly in October in a development that's likely to ease concerns over the state of Europe's largest economy.

The Federal Statistical Office said Friday that October orders were up 2.5 percent over September. Domestic orders provided the main impetus behind the rise, spiking 5.3 percent. Foreign orders swelled only 0.6 percent.

The agency also upwardly revised the previous month to show a 1.1 percent rise.

Germany's economy contracted slightly in the second quarter but avoided recession with meager 0.1 percent growth in the third quarter.

UniCredit economist Andreas Rees says it's "too early to push the all-clear button" for the industrial sector, but that the factory order figures — which beat economists' forecast of a 0.5 percent rise — were a "promising start."