German Industrial Orders See Unexpected Rise

(Reuters) – German industrial orders rose by more than forecast in June, official data showed on Tuesday, providing a glimmer of hope for Europe’s largest economy, where recession is back on the cards following a contraction in the second quarter.

Key Statistics

• Increase: Industrial orders increased by 3.9% in June compared to the previous month, adjusted for seasonality and calendar factors, according to the federal statistics office.
• Forecast: Analysts polled by Reuters had predicted a rise of only 0.5%.

Expert Insights

LBBW senior economist Jens-Oliver Niklasch commented, “The increase in orders in June exceeded all expectations, even without major orders. But in the current dark grey mosaic of economic figures, this is just a single light green tile. More needs to come together to give the industry any real confidence.”

Germany was the worst-performing major economy last year. In the second quarter, the country’s gross domestic product shrank by 0.1%, indicating it was struggling to gain momentum after narrowly avoiding a recession earlier in the year.