BERLIN (Reuters) – Orders for German-made goods rose twice as expected in January with strong overseas demand countering domestic weakness for cottage manufacturers in Europe’s largest economy, data show official Friday.
Data released by the Federal Statistical Offices showed that orders for business goods on the month rose 1.4% in seasonally adjusted terms, compared to Reuters forecast for a 0.7% increase.
The increase came after a revised 2.2% decline in December.
Domestic orders fell 2.6% on the month and orders from overseas rose 4.2%. Contracts from the euro zone rose 3.9%. Orders from the rest of the world rose 4.4%.
German factories have been slowing through the pandemic of higher foreign demand, helping the economy to avoid a recession in the last quarter of 2020 and correcting a decline in consumer spending among partial locking to contain COVID-19.
Higher demand from China, the United States and Europe pushed German factory activity to its highest level in more than three years in February, highlighting the outlook for the economy, a study showed Monday.
However, lockout measures introduced in November, and then tightened in mid-December, have held back private spending.
Strong exports and strong construction activity helped the economy to grow 0.3% in the last quarter of last year, but the tight lockout measures at home and abroad are giving the economic outlook a boost.
German business groups expressed outrage on Thursday after Chancellor Angela Merkel and state leaders gradually agreed on coronavirus loops but applied an “emergency brake” to reset restrictions if case numbers fall out of control.
The dubious reopening plan removed any hope of a rapid change in consumer spending this month to end the weak first quarter on a stronger note.
Written by Paul Carrel, edited by Thomas Escritt