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German industrial orders rebound strongly in February

Industrial orders in Germany rebounded more strongly than expected in February – a promising sign for first-quarter growth in Europe's biggest economy.

The Economy Ministry said yesterday that orders increased 2.3 pc compared with the previous month. That was better than the 1.1pc increase economists had expected.

In addition, January's figure was revised upward to show a 1.6pc decline instead of the original reading of 1.9pc. Andreas Rees, an economist at UniCredit in Munich, said the figures "are the first unambiguous signs of a turnaround in German hard data".

He added that it was not only the increase itself but its balanced composition that gave grounds for optimism.

Demand increased across the board in February, despite a below-average number of large orders. Orders from other euro area countries rose 1.6pc and those from other nations were up 2.7pc. There was a 2.2 pc increase in orders from inside Germany.

The German economy is widely believed to have returned to growth in the first quarter after shrinking by a quarterly rate of 0.6pc in the October-December period. That would prevent it from sinking into a recession, commonly defined as two consecutive quarters of economic contraction.

However, figures elsewhere showed that the eurozone as a whole is likely to remain in recession when first quarter figures are published next month.

Eurostat, the EU's statistics office, said retail sales dropped by a monthly rate of 0.3pc in February. The decline was expected in the markets but contrasts with the 0.9pcincrease recorded in January. (AP)

Irish Independent