Euro zone industry orders rise in August

BRUSSELS, Oct 24 (Reuters): Euro zone industrial new orders rose more than expected in August from the previous month, data showed Monday, signalling an underlying strength in manufacturing that could help the region avoid the deep recession some investors forecast. New orders in the 17 countries sharing the euro rose 1.9 per cent from July, above expectations for an increase of 0.2 per cent, according to data released by the EU's Statistics Office Eurostat. In the year to August 2011, orders increased by 6.2 per cent, against forecasts for a 5.7-per cent rise. Heightened concerns about the damage Europe's sovereign debt crisis is doing to business confidence is still evident, however, and data also released Monday showed a sharp contraction in manufacturing and services in October. Economists are divided over whether the euro zone will escape another recession following the 20082009 global financial crisis, but most agree the economy's two-year recovery peaked in August. Eurostat figures for August's industrial orders compared to a month-on-month fall of 1.6 per cent in July, revised from a previous estimate of a 2.1-per cent drop. The year-on-year figure for July was also revised, to 7.4 per cent, from an earlier 8.4 per cent. Excluding orders for ships, railway and aerospace equipment, the most volatile component of the index, orders in August were up just 0.7 per cent on the month, making for an increase of 5.0 per cent compared to the same month a year ago.