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German industry orders rise more than expected in November

Thursday, January 7, 2016 - 16:09
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Healthy domestic demand fuelled a bigger-than-expected rise in German industrial orders in November, data showed on Thursday, providing further evidence that Europe's biggest economy gained momentum at the end of last year.

[BERLIN] Healthy domestic demand fuelled a bigger-than-expected rise in German industrial orders in November, data showed on Thursday, providing further evidence that Europe's biggest economy gained momentum at the end of last year.

Contracts for 'Made in Germany' goods were up 1.5 per cent on the month, the economy ministry said. The second consecutive monthly rise compared with a Reuters consensus forecast for a rise of 0.1 per cent.

"After declining industrial orders in the third quarter, the impression of a subdued upturn in the manufacturing industry is becoming clearer," the ministry said.

"The sentiment indicators for industry are also sending positive signals." Domestic demand was up 2.6 per cent, compared with a 0.6 rise in foreign orders. "This shift of the German economy towards more domestic activity is probably the theme of 2015," said ING Bank analyst Carsten Brzeski.

"With record low inflation, record high employment, record low unemployment, strong consumption and the surge in domestic orders, the year 2015 marks the successful transition towards more balanced growth."

A 0.2 per cent increase in November retail sales also pointed to strengthening domestic demand after a 0.1 per cent decline in October.

The rise in domestic demand helps traditionally export-oriented Germany better weather a slowdown in emerging markets such as China and Brazil.

REUTERS