Aluminum metal ingot in operation: increase in orders surprised analysts. Source: AP
HB BERLIN. The German industry has started with an unexpectedly strong increase in orders in the spring. The companies received low in April and seasonally adjusted 2.8 percent more orders than last month as the Federal Economics Ministry announced on Monday. Analysts on average had expected only with an increase of 0.2 percent, following on the March revised the company brought an unexpected boom in orders of 5.1 percent had. According to the Ministry is expected to consolidate the recovery in industrial production.
The industry is currently the driving force of the economy on the way out of the recession low and now continues despite the debt crisis in Europe, their upward trend. Domestic demand grew by 2.9 percent and foreign orders rose by 2.8 percent. And yet there have been above average for an April large orders, the ministry said. From the positive development "primarily benefited the manufacturers of wholesale and capital goods, on a broad front." The orders for capital goods such as machinery, equipment and vehicles rose by 2.2 percent. For intermediate goods such as metals, which consumed in the production process, processed and converted, and even an increase of 4.2 percent was reported. Only manufacturers of consumer goods were 1.2 percent less orders.
The new orders exceeded their previous year’s level by almost 30 percent. However, there had been a year ago because of the financial crisis and the recession that followed the collapse of the greatest post-war period. In less volatile two month (March / April compared to January / February), the Orders placed by 6.7 percent.
The positive trend should continue. In the monthly surveys of the Ifo Institute and Markit, the industry reported despite a small shock in May of a good ongoing business.