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German October factory orders rebound

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Hamburg - German factory orders rose for the first time in four months, climbing more than economists anticipated, as demand for investment and consumer goods jumped amid an economic recovery in the country and the 19-nation euro region.

Orders, adjusted for seasonal swings and inflation, rose 1.8% in October after a revised 0.7% drop in September, data from the Economy Ministry in Berlin showed on Friday. The increase follows three consecutive monthly declines and compares with an estimate for an expansion of 1.2%. Orders fell 1.4% from a year earlier.

Record-low unemployment, a solid wage outlook and increased immigration is driving private consumption in Europe’s biggest economy that is expected to lead to above-potential mid-term growth, the Bundesbank said in its latest monthly report.

The eurozone recovery is benefiting from unprecedented stimulus by the European Central Bank (ECB), which cut its deposit rate on Thursday and increased the size of its asset-purchase program.

“After a rough patch for manufacturing orders in the third quarter, the latest data signal a timid recovery,” Germany’s Economy Ministry said in a statement.

“Especially demand from the euro area is picking up markedly, suggesting a continued recovery in our European partner countries.”

Consumer-goods orders from the currency bloc jumped 9.2% in October, according to the report. Domestic investment-goods demand rose 4.2% from the previous month. The ministry said bulk orders were below average in October.

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