German factory orders jump in sign of robust economic growth | Fin24
 
  • New Notes

    Long queues have formed in Harare after Zimbabwe released new bank notes and coins.

  • Open Book

    Former President Jacob Zuma says the public protector can access his tax records.

  • Electricity

    Sowetans should pay rate of R150/month to foster a payment culture, says an ANC councillor.

Loading...

German factory orders jump in sign of robust economic growth

Aug 04 2017 10:08
Carolynn Look, Bloomberg

Frankfurt - German factory orders jumped in June amid broad-based domestic demand, pointing to a pickup in momentum in Europe’s largest economy.

Orders, adjusted for seasonal swings and inflation, rose 1% after an upwardly revised gain of 1.1% in May, data from the Economy Ministry in Berlin showed on Friday.

The typically volatile reading compares with a median estimate for a 0.5% increase in a Bloomberg survey. Orders were up 5.1% from a year earlier, when adjusted for working days.

Manufacturing is turning into a driving force of growth in Europe’s largest economy - a trend the Bundesbank sees set to continue. Confidence among businesses is at a record high while steadily declining unemployment supports domestic spending.

Even so, economic activity at the start of the third quarter lagged behind that of France, Italy and Spain for the first time in more than 12 years.

“Orders point to another slight revival in industrial production,” the Economy Ministry said in a statement. “The excellent business climate in manufacturing supports this assumption.”

Orders rose 0.8% in the second quarter from the previous three months. In June, demand was driven by a 5.1% surge in domestic orders. Demand from abroad fell 2%.

The Economy Ministry will publish industrial-production data on Monday. A Purchasing Managers’ Index released this week showed that German economic activity cooled in July.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:

germany  |  economy  |  manufacturing
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote

Loading...