German industrial orders disappoint due to sagging euro zone

FILE PHOTO: Steel workers of ThyssenKrupp walk through the hall of the rolling mill of its steel factory in Duisburg, Germany, January 30, 2020. REUTERS/Wolfgang Rattay

BERLIN (Reuters) – German industrial orders grew less than expected in September as euro zone orders dropped, data showed on Thursday, highlighting the tough journey Europe’s largest economy faces towards recovering from the coronavirus shock.

Industrial orders rose 0.5% in September, less than the 2% analysts had expected, partly because bookings from other members of the currency bloc fell by 6%, offsetting expansion both in Germany and the rest of the world.

Growth slowed compared with the previous month, when orders were up a revised 4.9% as the economy recovered from the lockdown imposed to contain the spread of the pandemic.

In September domestic orders rose 2.3% on the month, and those from the rest of the world by 2.7%.

“After a first strong recovery following the lockdown in April, industry continues to fight its way out of the crisis,” the Economy Ministry said, hailing the data – which showed the fifth expansion in a row – as a positive signal.

A purchasing managers’ survey from earlier this week showed that though manufacturing in the euro zone was booming, this was almost entirely driven by Germany’s recovery.

Last week data showed the German economy – Europe’s largest – grew by a record 8.2% in the third quarter as higher consumer spending and exports helped Europe’s largest economy to recover partly from its worst-ever recession caused by the COVID-19 pandemic.

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