German industrial orders are up significantly in June, surprising analysts expecting more moderate growth amid economic turbulence in Greece and China. A weak euro has proven instrumental in filling German order books.
German factory orders were up sharply by 2 percent in June, with a weak euro fueling strong global demand, the Economics Ministry said on Thursday.
The growth in June marked a rebound from May’s 0.3 percent slump and defied analyst expectations of more modest growth in the month, in the face of volatility in China and Greece.
"Despite economic weakness in many emerging markets, companies were able to fill their order books," said Dekabank economist Andreas Scheuerle.
Strong overseas demand
"The economic recovery in the eurozone, the robust upswing in the US and the weak euro helped them do that. Now the German industry’s order books have closed with the highest quarterly increase in four years."
Especially demand from outside the eurozone, up 6.3 percent, pushed up the overall 4.3 percent rise in orders from abroad. But within Germany, demand has flagged, with orders falling 2 percent. Scheurele said soft domestic demand, especially for capital goods, points to weak investment within Germany.
The economics ministry said in its statement that German industry is "likely to maintain a moderate growth path" in the coming months.
jd/hg (dpa, Reuters)