German industrial orders rose unexpectedly in September, driven by strong demand from other euro zone countries for capital goods including machines and vehicles.

The figures suggest that the German economy will extend its solid upswing into the coming months. 

Manufacturing orders rose 1%, after contracts for "Made in Germany" goods rose by an upwardly revised 4.1% in August, Economy Ministry data showed. 

The September reading easily beat a Reuters forecast for a 1.5% fall. 

A breakdown of today's figures showed domestic demand edged down 0.1% while orders from abroad rose 1.7% and 6.3% from euro zone customers. 

The headline increase was driven by a rise in demand for capital goods, with orders from euro zone clients in that category surging 14.1%. 

Today's data suggested the German economy was set for strong growth rates in the second half of the year.

It grew 0.7% on the quarter in the first three months of the year and 0.6% from April to June, propelled by increased household and state spending as well as strong investment in buildings and equipment. 

Gross domestic product (GDP) growth data for the third quarter will be published on November 14. 

The German government expects the economy to expand by 2% this year, which would translate into a calendar-adjusted rate of 2.2%. 

"Order activity has gained further momentum from an already high level," the Economy Ministry said, adding that it expected the manufacturing sector's upswing to continue.