German industrial orders gain 2.8 percent in April: ministry

7th June 2010, Comments 0 comments

German industrial orders gained 2.8 percent in April from the level the previous month, provisional and adjusted data from the economy ministry showed on Monday, defying forecasts for a slight fall.

The ministry also revised a surprise increase in March slightly higher, to 5.1 percent on the month from the initial estimate of 5.0 percent.

In April, economists polled by Dow Jones Newswires had expected orders from the biggest European economy to slip by 0.5 percent.

Demand for intermediate and investment goods, those used to produce final products, was sustained, and domestic orders were slightly stronger with an increase of 2.9 percent than a foreign order gain of 2.8 percent, the data showed.

Orders for consumer goods declined however by 1.2 percent.

The figures confirm "the continuation and consolidation of a rebound in industrial production," a ministry statement said.

Compared with the same month a year earlier, new orders rose by almost 30 percent, ING senior economist Carsten Brzeski noted.

The euro's sharp drop against other major currencies has boosted Germany, which is the world's second biggest exporter after China.

"Be prepared for more good news from the German industry," Brzeski said.

After suffering its worst post-war recession in 2009, Germany expects economic activity to expand by 1.4 percent this year.

© 2010 AFP

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