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Germany’s industrial sector showed unexpected strength in October, offering a glimmer of hope that the country’s prolonged economic downturn may be easing. New factory orders rose 1.5% month-on-month, significantly outperforming analysts’ expectations of a 0.5% increase. The rise was powered primarily by a surge in major transport-equipment contracts—including aircraft, ships, trains, and military vehicles—linked to ongoing defence procurement efforts. September’s figures were also revised upward to 2%. Despite the positive momentum, economists remain cautious, noting that foreign demand continues to weaken and overall sentiment is still fragile. Even so, the data suggests Germany may finally be nearing the bottom of its industrial slump.
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