German industrial orders see rebound

GERMAN factory orders bounced back in the new year after a weak December, official data showed yesterday.

Industrial orders were up 2.9 per cent in January compared to December, when they dropped by a downwardly revised 3.6 per cent.

The jump surpassed the expectations of economists, and suggest that the Eurozone’s powerhouse economy is “surging again, confirming that the December drop was only a correction but not a trend reversal,” said ING’s Carsten Brzeski.

The rise was largely driven by higher domestic orders, which increased 4.5 per cent, while foreign orders rose 1.6 per cent.

And within foreign orders, demand from other parts of the euro area was strongest, rising by 2.3 per cent. Non-Eurozone orders were up just 1.3 per cent.

“Eurozone demand for German goods is alive despite fiscal austerity,” Brzeski said. “German industry is awakening from its short hibernation.”