German factory orders surpass estimates with a boost from electronics manufacturing
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Orders at German factories saw a 3.9% rise in August, surpassing The Wall Street Journal’s estimate of 1.5%, following an 11.3% decline in July, according to data from Destatis. This unexpected growth was largely driven by a remarkable surge in the manufacturing of computer electronics and optical products, which grew by 37.9%.
In contrast, the car industry experienced a slight dip of 0.7%. Despite this, the overall increase in factory orders was seen across multiple sectors, including electrical equipment and pharmaceuticals.
The report also highlighted a 4.9% growth from June to August when large-scale orders were included. This positive trend aligns with manufacturers’ purchasing managers’ surveys, which indicated improvement for the second consecutive month.
The robust labor market and contracting industry were cited as contributing factors to this upward trajectory. The data suggests an overall strengthening of Germany’s manufacturing sector amid global economic uncertainties.
