By Dow Jones Business News,
June 05, 2014, 04:05:00 AM EDT
FRANKFURT--Manufacturing orders in Germany increased more than expected in April on the heels of strong foreign
demand, the country's statistics office said Thursday, signaling a good start for Europe's largest economy in the second
New orders increased 3.1% on the month in adjusted terms, surpassing economists' expectations for a 1.5% rise. The
rise more than made up for a disappointing March, when monthly orders fell 2.8%.
"After a disappointing end of a strong first quarter, doubts about the strength of the German recovery had gradually
surfaced. Today's data shows that at least the industry is alive and kicking," ING economist Carsten Brzeski said in a
This time, orders from outside Germany carried the index, with foreign orders increasing 5.5% on the month in April.
Much of that came from inside the euro zone, where orders jumped 9.9%. Foreign orders from outside the euro zone
increased 3.1%, while domestic manufacturing orders were flat compared with March.
German manufacturing has been one of the driving forces behind the euro zone's return to growth that started in the
second quarter of last year, and a sustained slowdown in such a key element would be a fresh source of concern for
Last month, the country's central bank said the German economy will grow at a slower tempo in coming months, as the
positive effect of the mild winter in the first three months of the year weighs on the seasonally adjusted growth rate
in the current quarter. Still, the lower growth rate "should not be interpreted as a slowdown in the underlying economic
momentum," the bank said.
--Paul Hannon in London and Todd Buell in Frankfurt contributed to this article.
Write to Christopher Lawton at Christopher.Lawton@wsj.com
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