German industrial orders in June beat expectations

Berlin

Industrial orders in Germany surpassed expectations in June, official data showed recently, adding to a raft of sunny indicators for Europe’s largest economy.
There were 1.0 percent more new contracts in June than in the previous month, federal statistics office Destatis said in a statement citing provisional figures and correcting for seasonal effects. Analysts surveyed by data company Factset predicted growth of 0.5 percent in June.
The strong performance followed a 1.1-percent rebound in May.
Industrial orders are closely watched as an indicator of the future level of activity in an economy.
A closer look at June’s figures showed a 5.1-percent surge in orders from within Germany while demand from abroad fell 2.0 percent. Contracts from eurozone neighbours declined 2.4 percent and demand from the rest of the world slipped 1.5 percent.
Across different industrial sectors, producer goods makers saw demand rise 3.7 percent and consumer goods orders gained 2.3 percent, the economy ministry said in a separate statement.
Meanwhile, capital goods makers saw a 0.8-percent slip in orders.
“The orders data points to a slight upturn in industrial activity, supported by an excellent business climate in manufacturing,” the ministry said.
The data comes amid a raft of good news for the German economy ahead of a general election in September in which Chancellor Angela Merkel is widely expected to win a fourth term.
Confidence among German business leaders hit a “euphoric” all-time high in July, the Munich-based Ifo institute said, while the forward-looking GfK consumer confidence index for August indicated the mood among German shoppers was likely to continue to brighten. —Reuters

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