German industrial orders rebounded slightly in October, official data showed Tuesday, adding to hopes that an economic slowdown caused by Russia’s war in Ukraine and soaring energy prices might not be as bad as feared.
New orders, which provide a foretaste of industrial output in Europe’s largest economy, inched up by 0.8 percent on the previous month, federal statistics agency Destatis said.
The small uptick follows two months of steep falls, and was mainly down to a strong recovery in orders from abroad.
Domestic orders meanwhile were down month-on-month.
Germany’s export-oriented economy has been hammered this year by the fallout from Russia’s war in Ukraine, which has exacerbated supply chain woes and pushed up energy prices across the continent.
But the October bounce in factory orders, alongside recent surveys showing improved business confidence, is “a further indication that the recession may be weaker than feared,” the economy ministry said in a statement.
ING bank economist Carsten Brzeski however was less optimistic, noting that German order books have shrunk by almost 15 percent since the start of the year.
“The jury is obviously still out but the collapse in German industrial orders is one important signal that shows that the long slide into industrial recession continues,” he said.
The German government expects the country’s economy to shrink by 0.4 percent next year.
