Industrial Orders on the Rise in Germany

After losing ground in December, German industrial orders jumped 4.3 percent in January. The increase was the largest single-month increase since December 2004.

“The main driver here was domestic demand for investment goods,” which was 10.0 percent stronger, UniCredit economist Alexander Koch said in reference to the jump in domestic orders.

Although the “temporary massive impulse from the inventory cycle and fiscal programs will inevitably moderate” later this year, “for the time being the tailwind remains ample,” he added.

Germany is recovering from its worst slump since World War II, with gross domestic product declining by 5.0 percent in 2009.

Source: AFP News

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