German industrial orders gained 2.4 per cent in February, according to economy ministry provisional data released yesterday, with domestic demand underscoring the positive trend in Europe’s biggest economy.
A ministry statement also revised the level of January order growth up to 3.1 per cent from an initial estimate of 2.9 per cent, another sign of German strength that has benefitted from global economic activity.
The latest increase was well above a forecast monthly rise of 0.5 per cent compiled by Dow Jones Newswires.
“The strongest momentum at the moment is from the domestic market,” the statement said.
Orders from within Germany climbed 2.6 per cent in February, while foreign orders were 2.3 per cent higher, an encouraging sign that domestic demand is contributing to overall growth.
Orders from across the 17-nation eurozone rose by 3.2 per cent meanwhile, with the third consecutive rise suggesting broadly favourable conditions among Germany’s neighbours as well.
Germany has traditionally relied on exports to power its industrial machine. A breakdown of the figures showed domestic demand was driven in particular by companies, while household consumption was also positive, but less dynamic.
German orders for investment goods, used to make final products, gained 4.6 per cent on the month, while those for consumer goods were 2.1 per cent higher.
Last week, the national statistics office said German retail sales had fallen by 0.3 per cent in February from the previous month, as a long hoped for consumer rebound failed to materialise.