Germany’s industrial economy remains on a positive path despite a setback in manufacturing orders in November, economists said following the release of data that point to a continued strong economy in the new year.
Official figures published Monday showed that new orders in German industry declined by 0.4% on month in November 2017. This followed growth of 0.7% in October last year and was the first decline since July. Economists polled by The Wall Street Journal had expected growth in new orders to be unchanged.
Observers, however, remain upbeat on the German economy’s continued path of growth and on its powerful industrial sector.
“There is little reason to get concerned. The general trend for industrial production in Germany remains positive,” said ING economist Carsten Brzeski, noting low inventories and high capacity utilization.
“The signs for the coming months continue to point to a strong increase in industrial production,” said Commerzbank economist Marco Wagner.
Germany’s statistics office is due to release industrial output data Tuesday. Polled economists are expecting growth of 1.9% on month, which would more than reverse October’s 1.4% decline.
On Thursday, the statistics office will also publish its estimate for 2017 growth. Experts expect that the economy grew by 2.3% last year.
Source: Dow Jones