German Industrial Orders Drop in March

Figures released by the German Economy Ministry on Thursday showed an unexpected 0.7 percent drop in industrial orders in March compared with the previous month. Economists had forecast a rise, but the latest numbers appear to reinforce recent downward revisions of expected growth in Germany. Decline in demand was most pronounced in consumer goods and semi-finished products, as well as in orders for intermediate goods such as chemicals. Economists are particularly concerned by the drop in demand for intermediate goods, as this is seen as an important early indicator for future growth. "It gives you a bad feeling and makes you doubt that the upturn is really robust," economist Adolf Rosenstock of Nomura International told Reuters. Recent surveys and reports had indicated that Germany's industrial outlook was buoyant, but Thursday's figures, despite a probable upward revision, tell a different story.