German factory orders seem to have accelerated in August

German factory orders are likely to have picked up pace in August. After rising 0.2 percent sequentially in August, factory orders are expected to have grown 0.6 percent in August, said Societe Generale in a research note. Domestic orders are anticipated to have robustly rebounded after the likely holiday related decline in July, whereas foreign orders probably fell sequentially in August.

While certain business surveys such as Ifo and service PMI were quite subdued in July and August, data have been considerably stronger for September, indicating that the summer slowdown was mainly temporary, probably linked to Brexit uncertainty, stated Societe Generale.

On the other hand, export orders have continued to stay buoyant in the summer and bolstered further in September. Given the underlying strength of domestic demand, domestic orders might also strengthen in months ahead, according to Societe Generale.