EU industrial orders fail to meet estimates

Written by Bloomberg | Brussels | Updated: Jan 6 2012, 09:05am hrs
European industrial orders increased less than economists estimated in October, adding to signs of a deepening economic slump in the single-currency region.

Orders in the 17-nation euro region rose 1.8% from September, when they dropped 7.8%, the European Unions statistics office in Luxembourg said on Thursday. Economists had forecast orders to increase 2.5%, the median of 11 estimates in a Bloomberg News survey showed. Producer-price inflation slowed to 5.3% in November from 5.5% in the previous month, a separate report showed.

Cooling global growth, rising unemployment and budget cuts from Spain to Italy may make it difficult for European manufacturers to sustain order growth, pushing the economy closer toward a recession.

Euro-area orders rose 1.6% from a year earlier after a similar increase in September, Thursdays report showed. Orders for capital goods advanced 1.6% from September, when they fell 8.1%. Orders for durable consumer goods dropped 2.3%, while those for intermediate goods slipped 0.2%. Total orders excluding heavy transport equipment such as ships and trains fell 0.5% from the previous month.