‘The increase in orders was important – otherwise concerns about production would definitely have been warranted.’ – lexander Krueger, Bankhaus Lampe
German industrial orders rose in February after plunging in the preceding month amid stronger domestic demand. The Economy Ministry reported on Thursday that booking advanced 3.4% during the reported month, following January’s drop of 6.8% but falling behind analysts’ expectations for a 3.5% increase. The data followed a private survey that showed that manufacturing activity growth hit its highest level in almost six months in March. Both data releases suggested that the manufacturing sector contributed significantly to GDP growth in the Q1 of 2017. Nevertheless, orders from the Euro zone dropped 8.1%, failing to contribute to growth. Sophia Krietenbrink from the DIHK suggested that global political risks continued to put significant pressure on international demand for German-manufactured goods. The Economy Minister added that in the two-month comparison for January/February compared to November/December, orders dropped 2.4% amid both weak domestic and international demand. However, it expressed hopes that industrial activity would improve in the upcoming months. On Friday morning, Destatis reported that German industrial production climbed 2.2% in February, unchanged from a downwardly revised reading in January. Meanwhile, analysts anticipated a drop of 0.1%.
