Germany likely stabilizing in manufacturing

German manufacturing orders climbed by 1.85% in October, after several months of weak data. The demand from outside the euro zone is an important factor, which appears to be stabilized after summer's sharp decline.

It is likely that IP will again expand modestly, in Q4. German manufacturing sectors incoming orders turned out positive for first time in a long while.

In last five months, they have declined more than 4 times, hence the rise of 1.8% was noticeable in October, this growth rate is effected by decline in the volatile orders in "other vehicles" sector.

"Therefore, it is likely that in Q4 the German economy will only grow as much as in Q3 (+0.3%), if at all. Against this backdrop we tend to see downside risks to our growth forecast of 1.5%, which is already below the consensus", says Commerzbank in a research note.