German industrial orders soar 3.7 per cent

6th September 2005, Comments 0 comments

6 September 2005, BERLIN - In a sign of recovery in Germany's sluggish economy, industrial orders jumped 3.7 per cent from June to July, the German government said Tuesday in Berlin as it released provisional figures adjusted for inflation and seasonal changes.

6 September 2005

BERLIN - In a sign of recovery in Germany's sluggish economy, industrial orders jumped 3.7 per cent from June to July, the German government said Tuesday in Berlin as it released provisional figures adjusted for inflation and seasonal changes.

The gains were in exports. Recent German consumer and business sentiment figures have shown domestic demand remaining depressed.

This pattern of booming exports and stagnant domestic demand has led to the unusual situation that Germany is the world's number one exporter, but has very low growth. 

The Economics Ministry also attributed the July gain mainly to a surge in big-value orders.

The overall boost came from export contracts: orders from abroad were up 7.7 per cent from June, whereas orders from within Germany slipped back 0.1 per cent after strong growth in June, the figures showed.

Economics Minister Wolfgang Clement said in a statement: "The figures have now risen more strongly than before for a third straight time. That means the upwards directed curve of demand for industrial products has further solidified."

In June, order growth was posted at 2.3 per cent. Berlin has been hoping for months for a glimmer of recovery in economic data. Germany's troubled economy is currently the key election issue, with Germans set to go to the polls in a general election on September 18.

It may be too late for Chancellor Schroeder may not get any credit for an economic upswing. 

DPA with Expatica

 

Subject: German news

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