Domestic demand drive German industry orders increase in February

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Domestic demand drive German industry orders increase in February

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German industrial orders rose in February, with domestic demand the main driver.

The increase was a stronger-than-expected 0.6 percent, the Economy Ministry said in data adjusted for seasonal factors like weather.

It was the fourth consecutive monthly gain and underscores the pickup in German industrial output.

The figures also provide indications of economic improvement elsewhere in the eurozone.

Orders from the region were up 5.9 percent, contrasting with a 3.1percent drop in orders from countries outside the eurozone.

“Order books are well filled… and that supports the economy because production should remain strong,” said Thomas Amend at HSBC Trinkaus, noting that mild winter weather had fostered the recovery in the industrial sector.

“Gross domestic product will likely grow slightly stronger in the first quarter than at the end of 2013.”

Germany’s export-oriented industry struggled to gain traction last year against the backdrop of a weak global economy. But it picked up towards the end of 2013 and looks set to perform better this year.