FRANKFURT (Dow Jones) – New orders for the German industry is far more dynamic start to the year than expected, which should inspire hopes of a sustained recovery of industrial activity. (Photo: ddp)
As the Federal Ministry of Economics (BMWi) on Wednesday announced on the basis of preliminary data, prices stagnated orders in February and interviewed over the seasonally adjusted Vormonat.Von Dow Jones Newswires Economists had anticipated a decline of 1.0% and this with the unexpected strong rise in orders in January (up 4.3%) is the reason. The expected rebound but remained not only, but the increase in orders for January was also revised upwards to 5.1%.
The BMWi Experts are several reasons for it, "that the recovery process is likely to continue in the industry." Tended there was "clearly positive impulses in order activity." This applies both to the intermediate goods industry, especially the chemical industry and metal production and processing, as well as for important sectors of the capital goods industry, such as mechanical engineering. In support of a continuation of the economic recovery also "remain solid business climate in manufacturing industry".
The volume of large orders had failed in February for an "average". While in February, orders from abroad rose by 1.8%, the domestic order activity decreased by 1.9%. In the main industrial groupings, the Intermediate goods showed a 2.1% increase in orders. The order volume of capital goods went down by 0.6% in contrast to consumer goods and even by 5.6%.
ING economist Carsten Brzeski assumes that the German economy wakes up from a brief hibernation "is. "After the witterungsgetriebenen weakness on last year, the published indicators suggest that the recovery driven by the industry takes up speed again," he said.
In the view of Alexander Krueger, an economist at Bank lamp, "presents the situation continues to be very cheap and shows that the industry is on the up." However, Kruger does not expect that this strength is already showing in the growth data of the first quarter. "The momentum is only in the second quarter," he predicted. Krueger anticipates first quarter because of the harsh winter only with an increase in gross domestic product (GDP) by 0.2%. A positive surprise on Thursday at the upcoming data on industrial production in February he expected.
For the production in the manufacturing sector expect the economists surveyed by Dow Jones Newswires an increase of 1.0%, after it was recorded in January, an increase of 0.6%. Here is the development in recent months not as turbulent as in orders run, however, even after the recession slump was not as strong as had been the orders.
By Hans-Bentzien and Beate Preuschoff, Dow Jones Newswires, +49 (0) 69 29725 300,
Hans.Bentzien @ dowjones.com
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