German factory orders rose a stronger than expected 1.4% M/M in August to be down still 20.4% Y/Y, little changed from July when orders fell 20.1% Y/Y. The July rise of 3.5% M/M was revised to 3.1% M/M meaning that all in all the report was in line with expectations. The report suggests that the recovery in the German industry continued. The increase was broad-based across sectors, but with cars outperforming sharply.
Q2 EMU GDP was revised down to -0.2% Q/Q from -0.1% Q/Q previously. There was a clear geographical divergence between Germany, France and Portugal all up 0.3% Q/Q on the one hand and Spain (-1.1% Q/Q), Italy (-0.9% Q/Q) and Austria (- 0.5% Q/Q) on the other hand. The composition of GDP didn’t show big revisions.
