German factory orders up more than expected

laFrankfurt, Germany (AFP) - German industrial orders rebounded more than expected in September, official data showed Wednesday, but analysts warned a Donald Trump victory in the United States could present a risk to the country's crucial exports.

New orders, closely watched as an indicator of future business activity, rose 4.2 percent month-on-month, according to federal statistics agency Destatis, after slumping in August.

Analysts surveyed by financial data firm FactSet had been expecting an increase of 1.3 percent.

It was a rare piece of good news for Europe's top economy, which has struggled in recent times in particular due to a slowdown in its factories.

"The significant increase is a pleasant surprise," said analyst Jens-Oliver Niklasch from LBBW bank, adding that it "finally gives hope for a revival in the manufacturing sector".

Excluding large orders, which can be volatile month to month, September orders would have been up 2.2 percent.

Results in the US presidential election early Wednesday put Trump on the verge of beating Kamala Harris.

Niklasch warned that a Trump win "is likely to make things more difficult for (German) industry in the near future... German exports to the US are likely to come under pressure from import tariffs in 2025."

Trump has pledged to impose wide-ranging tariffs on imports if he returns to the White House. Exports are a key pillar of the German economy, and the United States is a major destination for "made in Germany" products.

Germany's economy has been struggling to recover after shrinking in 2023, weighed down by surging energy and food costs, as well as weak demand from key trading partners like China.

The government and economic institutes are forecasting a second successive year of contraction in 2024.