German Factory Orders Rise For Second Month
May 08 2017 - 3:15AM
RTTF2
Germany's factory orders grew for the second straight month in
March, albeit at a slower pace on weak domestic orders, data from
Destatis showed Monday.
Orders grew 1 percent month-on-month in March, in line with
expectations, but slower than the revised 3.5 percent increase in
February. This was the second consecutive rise in orders following
a sharp 6.7 percent decrease in January.
Excluding major orders, factory orders increased only 0.6
percent in March.
Domestic orders declined 3.8 percent, while foreign demand grew
4.8 percent in March. New orders from the euro area advanced 6.8
percent and that from other countries gained 3.5 percent.
Annual growth in factory orders almost halved to 2.4 percent in
March from 4.7 percent in February.
At the same time, manufacturing turnover dropped 0.8 percent in
March, reversing February's 1.3 percent increase.
The economy ministry said economic conditions in the
manufacturing industry is favorable. This is reflected by the
strongly brightened business climate indicators, the ministry
added.
The Bundesbank earlier said the German economy is set to pick up
considerably in the winter quarter of 2017.
New orders are highly volatile but today's figures suggest that
the sharp fall in new orders at the start of the year was mainly
the result of seasonal effects and technical corrections, Carsten
Brzeski, an economist at ING, said.
In fact, combined with buoyant confidence indicators today's new
orders data suggest that industrial production could finally gather
some momentum, the economist added.
There is increasing evidence that contrary to previous cycles
industrial production could be the lagging factor of the current
positive economic expansion, Brzeski noted.
Manufacturers of intermediate goods reported a 3.7 percent fall
in orders. Meanwhile, the manufacturers of capital goods showed an
increase of 3.7 percent. For consumer goods, an increase in new
orders of 5.5 percent was registered in March.
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