German industrial orders rose twice as much as expected in June as a surge in domestic demand offset weaker foreign appetite, data showed on Friday, suggesting this sector of Europe’s largest economy will gain traction in the coming months.
Factories posted a 1 percent increase in contracts in June after orders for German-made goods rose by an upwardly revised 1.1 percent in May, data from the Economy Ministry showed. That beat the Reuters forecast for a 0.5 percent rise, reports Reuters.
“The order numbers are another mosaic tile in what is a very positive picture of the economy,” said Nordea economist Holger Sandte.
A breakdown of the June data showed domestic demand increased by 5.1 percent while foreign orders dropped by 2 percent, with orders from the euro zone declining by 2.4 percent.
But foreign orders are generally outpacing domestic demand even though Friday’s data showed the opposite, Sandte said.
“The stronger euro isn’t likely to hamper this development much so the traffic lights for the economy are still glowing green,” he added.
The orders data follows a flurry of upbeat figures that have underlined the strength of the German economy seven weeks before a national election in which Chancellor Angela Merkel is seeking a fourth term.
