Germany factory orders rise 3.1 percent in April on strong foreign demand

Nathan Andrada – Fourth Estate Cooperative Contributor

Berlin, Germany (4E) – Factory orders in Germany bounced back in April, accelerating at the fastest rate in almost a year, driven by strong overseas demand, especially from the euro zone.

Factory orders climbed 3.1 percent in April from March, according to data from Destatis released Thursday. The pace is the fastest growth since June 2013. Economists projected a 1.4 percent gain in orders, after they dropped 2.8 percent in March.

Although the economy in the first quarter expanded at the fastest pace since 2011, the Bundesbank predicted a slowdown in growth in the second quarter.

Orders from the euro zone were up 9.9 percent on the previous month, while orders from other countries grew 3.1 percent.

Demand for intermediate goods increased 0.2 percent, and those for capital goods rose 4.4 percent. For consumer goods, orders gained 7.1 percent.

Industrial orders increased 6.3 percent compared with a 1.5 percent rise in March year on year. The rate also surpassed the 4.6 percent growth estimated by economists.

Industrial production data is scheduled to be released this Friday. Overall production is projected to increase 0.4 percent in April month on month, reversing a 0.5 percent decline in March.

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