German industrial orders gain 1.6 per cent in month

German industrial orders rose by 1.6 per cent in October from the level in September, Economy Ministry data showed yesterday.

Germany has the biggest economy in Europe and is heading for record growth this year, a track supported by this latest data.

Analysts polled by Dow Jones Newswires had forecast a more modest seasonally-adjusted rise of 0.8 per cent following a sharp drop of four per cent in September.

A breakdown of the numbers showed that industrial orders from within Germany gained a solid 2.4 per cent on the month while those from abroad were up by 0.8 per cent.

The rebound bodes well for stronger industrial output in the fourth quarter of 2010, and should help Germany post its best full-year growth since the country was reunified in 1990.

A German central bank forecast last week saw economic activity expanding by 3.6 per cent this year followed by growth of two per cent in 2011.

The economy has bounced back from its worst post-war recession in 2008-09 owing to robust global demand for its automobiles and high-quality industrial goods, and is starting to get help on the domestic front as well.