German industrial orders miss expectations, drop by 0.6 pct m/m in September

German industry orders fell in September, down by 0.6 percent m/m from 0.9 percent in August, data released by the Economy Ministry showed on Monday. Data missed forecast for a rise of 0.3 percent and the previous month's data was also revised down to a rise of 0.9 percent from a previously reported increase of 1.0 percent.

Weak demand both at home and abroad drove an unexpected fall in German industrial orders in September, details of the report showed, but bookings had picked up somewhat in the third quarter as a whole. On the year, new orders were still up by 2.7 percent.

Domestic demand fell by 1.1 percent while foreign orders decreased by 0.3 percent. Demand from euro zone countries dropped by 4.5 percent. Demand for capital goods fell -1.6 percent m/m, while demand for consumer and intermediate goods increased somewhat.

"New orders bring sense of reality back to industry. The initial relief after the Brexit shock provided by two positive months with increasing new orders has now given room for realism. Against this background, the optimism reflected in surging confidence indicators is in our view striking,” said ING in a report.