German orders rise unexpectedly in April
FILE PHOTO: A worker assembles a vehicle at the Knaus-Tabbert AG factory in Jandelsbrunn near Passau, Germany, March 16, 2021. Picture taken March 16, 2021. REUTERS/Andreas Gebert/File Photo
FRANKFURT, Germany — German industrial orders climbed unexpectedly in April, official data showed Thursday, a positive sign for Europe’s largest economy as it looks to exit months of stagnation.
New orders, closely watched as an indicator of future business activity, rose 0.6 percent month-on-month, according to preliminary data from federal statistics agency Destatis.
Analysts surveyed by financial data firm FactSet had forecast a drop in new orders of 2.2 percent in April.
The reading built on data from March, when orders rose by 3.4 percent on the previous month, according to a revised figure from Destatis.
The increase in orders was “essentially attributable” to the growth in orders for computer, electronic and optical products, which rose 21.5 percent.
Orders for transport goods and fabricated metal products also rose 7.1 percent and 4.4 percent, respectively.
Meanwhile, orders of electrical equipment fell 9.2 percent and those of machinery declined 4.4 percent.
The strong increase in March was linked by analysts to companies rushing to stock up on goods ahead of the imposition sweeping US tariffs.
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‘More than just front-loading’
US President Donald Trump has rattled global markets by slapping sweeping tariffs on key trading partners, including the European Union.
April’s positive reading suggested that recent increases were “more than just trade-driven front-loading”, ING bank analyst Carsten Brzeski said.
March’s increase was driven by foreign orders while April’s more modest increase was down to the strength of domestic demand, Brzeski noted.
Orders from outside the eurozone fell by 0.9 percent in April, while those from within Germany climbed 2.2 percent.
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Fears that the “frontloading effect” prompted by Trump’s tariffs would go into reverse were not materializing as yet, Brzeski said.
“Instead, it looks as if the turning of the German industrial cycle is continuing.”
