Industry Orders Rise In February, Point To Strong First Quarter
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[April 04, 2014]
By Sarah Marsh
BERLIN (Reuters) — Domestic demand drove a
stronger-than-expected 0.6 percent rise in German industrial orders in
February, Economy Ministry data showed on Friday, marking the fourth
consecutive monthly gain and underscoring the pickup in Germany's mighty
The increase in seasonally-adjusted orders beat the consensus
forecast in a Reuters poll of 32 economists for a rise of 0.1
percent. The gain in January orders was revised downwards to 0.1
percent from an originally reported 1.2 percent.
Domestic orders were up 1.2 percent, driven by demand for
intermediate and capital goods, while contracts from abroad inched
up 0.2 percent.
"Order books are well filled ... and that supports the economy
because production should remain strong," said Thomas Amend at HSBC
Trinkaus, noting that mild winter weather had fostered the recovery
in the industrial sector.
"Gross domestic product will likely grow slightly stronger in the
first quarter than at the end of 2013."
Germany's export-oriented industry struggled to gain traction last
year against the backdrop of a weak global economy. But it picked up
towards the end of 2013 and looks set to perform better this year.
That is in line with the overall performance of the German economy,
Europe's largest, which powered through the early years of the euro
zone crisis but weakened towards the end of 2012 and start of 2013.
After growth of just 0.4 percent last year, economists expect
expansion of around 1.8 percent in 2014, reflecting a pickup
worldwide and particularly in the euro zone, emerging from its debt
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The orders data on Friday showed a 12.2 percent surge in contracts
from the euro zone for capital goods after a 18.1 percent drop in
January. Overall orders from the euro zone were up 5.9 percent,
contrasting with a 3.1 percent drop in orders from countries beyond
the currency bloc.
"The decrease of orders from non euro zone countries indicates that
the impact from emerging market woes at the beginning of the year on
the real economy could be bigger than buoyant confidence indicators
made us believe," said Carsten Brzeski at ING.
(Additional reporting by Stephen Brown and Rene Wagner)
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