Germany factory orders gain 2.1 percent in November as foreign demand rises

Nathan Andrada – Fourth Estate Cooperative Contributor

Berlin, Germany (4E) – Manufacturing orders in Germany rose in November from the previous month amid huge volume of bulk orders, and driven by a significant rise in demand from outside the euro zone, according to the Economy Ministry statement on Wednesday in Berlin.

When adjusted for seasonal swings and inflation, orders increased 2.1 percent from October when they dropped by the same amount, according to the economics ministry. The median forecast of 32 economists surveyed by Bloomberg News called for a rise in orders by 1.5 percent.

The increase comes as a relief because previous economic data had indicated a surprisingly slow start to the fourth quarter for Europe’s biggest economy. However, rising business sentiment and strengthening demand for German capital goods are expected to boost German industrial activity in the coming months.

The German economy helped lift the euro zone’s economic rebound in the second half of 2013 and remains to be “in good shape, ” according to the Bundesbank in December when it increased its growth forecast for 2014. Unemployment levels dropped more than analysts anticipated at the end of 2013 and retail sales rose for the first time in three months in November.

For the month of November, foreign orders of German manufacturing goods climbed 2.2 percent from the previous month as demand from outside the euro zone increased 3.5 percent. Meanwhile, domestic orders jumped 1.9 percent.

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