Following several months of weaker activity amid a troublesome environment for the export economy, German factory orders have experienced a significant uptick, driven in large part by domestic demand. The figure climbed by 4.90% on month over month in October, marking the biggest jump since July of 2014. Besides handedly beating expectations of 0.60% growth, the prior figure was also revised modestly higher, suggesting a better recovery in fundamentals. The primary driver of the growth was domestic demand climbing by 6.30% while demand from outside the Eurozone rose by 3.90%. However, one area of concern is orders within the Euro Area, with purchasing flat as the outlook for the aggregate remains shaky despite extremely accommodative monetary measures. After a spectacular rally on Monday, the German DAX 30 equity benchmark is pulling back slightly following the factory report.
German Manufacturing on the Mend
Daily Analysis - 06/12/2016