German industrial orders gain 4.4 %

German industrial orders climbed by 4.4 per cent in May from the previous month, official data showed yesterday, pursuing a rise begun in March as the economy ministry saw prospects for stabilised output.

On a yearly basis however, orders for industrial goods in the biggest European economy fell by 29.4 per cent, the ministry figures showed.

Both numbers were nonetheless better than analyst forecasts that had expected a monthly rise of 0.5 per cent and an annual fall of 31.5 per cent.

The ministry revised the monthly figure for April to a slight rise of 0.1 per cent from a previous estimate of no change, meaning that industrial orders, a key indicator of future output, have now risen for three months running.

"Is this the turn for the better?" ING senior economist Carsten Brzeski asked. "After the dramatic declines since end-2007, new orders have started a fragile recovery."

Strong contributions were turned in by the auto construction and auto parts sector, the ministry statement said, while orders from outside the 16-nation eurozone jumped by 8.2 per cent on the month.

That was good news for Germany's export-oriented economy, which is suffering its worst recession since World War II.

"The perspective of a broad stabilisation in industrial production has been reinforced by the latest data," the ministry said.