German Industry Orders Rise in February

Domestic demand drove a stronger-than-expected 0.6 percent rise in German industrial orders in February, Economy Ministry data showed on Friday, marking the fourth consecutive monthly gain and underscoring the pickup in Germany’s mighty industry.

The increase in seasonally-adjusted orders beat the consensus forecast in a Reuters poll of 32 economists for a rise of 0.1 percent. The gain in January orders was revised downwards to 0.1 percent from an originally reported 1.2 percent.

Domestic orders were up 1.2 percent, driven by demand for intermediate and capital goods, while contracts from abroad inched up 0.2 percent.

“Order books are well filled … and that supports the economy because production should remain strong,” said Thomas Amend at HSBC Trinkaus, noting that mild winter weather had fostered the recovery in the industrial sector.

“Gross domestic product will likely grow slightly stronger in the first quarter than at the end of 2013.”

Germany’s export-oriented industry struggled to gain traction last year against the backdrop of a weak global economy. But it picked up towards the end of 2013 and looks set to perform better this year.

via Reuters

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