German factory orders rise less than forecast as growth stalls

German factory orders climbed less than forecast in a sign the Euro area's largest economy may struggle to grow in the second half of the year.

Orders, adjusted for seasonal swings and inflation, rose 0.8 per cent in September after a revised decline of 4.2 per cent in August, data from the Economy Ministry in Berlin showed on Thursday. Economists predicted an increase of 2.3 per cent, according to the median of 39 estimates in a Bloomberg News survey. Orders fell 1 per cent on the year.

The European Commission cut its economic forecasts for the euro area this week, including its outlook for Germany, France and Italy, as the legacy of the debt crisis lingers in high unemployment and weak demand. Germany's economy contracted in the second quarter, and the Bundesbank predicts little, if any, growth in the rest of the year, in part because of trade disruptions from sanctions on Russia.