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German Factory Orders Boosted by Foreign Demand

German Factory Orders Boosted by Foreign Demand

May 9, 2016
Foreign orders rose 4.3% from February -- particularly from outside the eurozone where demand surged by 6.2%.

German industrial orders, a key measure of demand for goods in Europe's biggest economy, rebounded in March on the back of stronger than expected foreign demand, the economy ministry said Monday.

Orders rose 1.9% for the month compared to March last year, in a recovery that outstripped the 0.7% growth predicted by analysts.

The positive bounce came after a slump of 0.8% in February

The ministry noted that the rebound was based mainly on strong growth in foreign orders, which rose 4.3% from February -- particularly from outside the eurozone where demand surged by 6.2%.

Domestic orders meanwhile declined by 1.2% on a month on month basis.

The March growth is the "the biggest monthly increase in nine months and markedly above expectations," said Johannes Gareis, an analyst at Natixis bank.

"Overall, today's report was strong and provided good news for Germany’s manufacturing sector, following a lackluster performance in the recent past," he added.

ING's Carsten Brzeski noted that "even if monthly new orders data is too volatile to be a really reliable indicator of what is going on in the industry, today's numbers give some hope that the stagnation since last summer is gradually fading away.

Copyright Agence France-Presse, 2016

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