Data published by the Federal Statistical Office (Destatis) showed that in September, factory orders rose by 4.2%, partially offsetting the August drop (-5.4%, revised from -5.8%) and recording the sharpest increase since June. Economists had expected a 1.5% increase. Meanwhile, over the last three months (through September), factory orders rose by 4.2% compared to the previous three months. When large-scale orders are excluded, new orders increased by 2.2% compared to August, and fell by 0.6% q/q over a three-month period.
Destatis said that the increase in factory orders in September was mainly due to the "manufacture of other transport equipment" sector (aircraft, ships, trains, military vehicles). Due to several large-scale orders, new orders in this sector more than doubled (+117.1%) from the previous month. The increase in new orders in the automotive industry (+2.9%) also had a positive effect. However, new orders fell in the manufacture of basic metals (-10.0%) and the manufacture of machinery and equipment (-3.6%).
As for sectors, new orders rose in the capital goods sector (+8.3% m/m) and the consumer goods sector (+3.8% m/m), but fell in the intermediate goods sector (-2.4% m/m).
Meanwhile, foreign orders increased by 4.4% m/m, while new orders from the euro area rose by 14.6% m/m. New orders from the rest of the world fell by 1.6% m/m, while domestic orders rose by 3.6% m/m.