BERLIN, Dec. 6 (Xinhua) -- Germany's manufacturing sector beat analysts' prediction of a slight decline, figures from the Federal Statistical Office showed on Wednesday.
Season and price adjusted orders rose by 0.5 percent in October compared to September. "The manufacturing sector's current momentum is likely to last," the Ministry for Economics commented in a statement, noting it marked the third straight monthly increase.
October's positive development was supported by an increase in domestic demand (0.4 percent) as well as foreign demand (plus 0.5 percent). A decline of 1.2 percent in orders placed in the Eurozone was compensated by a 1.6 percentage point jump in orders from other international markets.
Speaking to Xinhua, Bertelsmann Institute Economics expert Thiess Petersen said that well-filled order books were "likely to increase the willingness of firms to invest, which in turn would further contribute to growth."
"The expanding global economy benefits the export-dependent manufacturing sector in particular," Alexander Krueger, chief economist at Bankhaus Lampe, told the press.
Krueger warned, however, that most companies were already operating at full capacity, making further growth increasingly unlikely.
The German Chemical Industry Association (VCI) expects its revenue growth to decline to 3 percent in 2018 after 5.5 percent in 2017. Similarly, Germany's Automotive Industry Association (VDA) forecasts a fall in new vehicle registrations of 2 percent after a 3 percent increase in 2017.
Overall, the German economy grew by 0.8 percent in the third quarter and is widely anticipated to maintain its current pace during the fourth quarter of 2017.
Another study released on Wednesday by the government-owned Credit Institute for Reconstruction (KfW) also fit into this rosy picture by drawing attention to optimism among German business leaders. The KfW's business optimism barometer rose by 0.7 points to the record level of 31.4 points in November.
"Healthy domestic demand and a strengthening global economy are allowing firms look towards the new year with great confidence." Joerg Zeuner, KfW chief economist, commented on his institute's findings.
Nonetheless, Petersen warns that policymakers should not overlook several risks which could yet derail German growth. These include "a number of geopolitical crises, the uncertain outcome of Brexit negotiations, as well as protectionist measures threatened by the U.S. government and asset price inflation which is approaching bubble territory."
