Tuesday 24 August 2010

New Industrial Orders Beats Expectations

Released today at 10:00 GMT by Eurostat was the Eurozone’s monthly change in new industrial orders. Expectations were to see that orders had increased this month by 1.6%, but the figure released showed that the actual increase in orders was 2.5%. This may not have been as high as last month’s 3.8% rise, but the figure has been positive for the past 5 months. In the Past 12 month’s new industrial orders has grown 10 months and only fell 2, and in the past 2 months has beaten expectations. Lots of investors are speculating at the current time that we are going to get a double dip recession and are forcing equity prices lower. As this data continues to rise and do better than expected surely it means that companies out there are set to make significant profits from these orders. This says to me that there must be companies out there that are getting cheaper as they are sold down that have strong order books and the potential for strong profits.

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