BERLIN: German factory orders recovered in March after two months of decline, signaling that Europe’s largest economy is poised to grow at a steady pace.
Orders, adjusted for seasonal swings and inflation, rose 0.9 percent after declining at the same rate in February, data from the Economy Ministry in Berlin showed on Thursday. The typically volatile number compares with a median estimate of a 1.5 percent increase in a Bloomberg survey. Orders jumped 1.9 percent from a year earlier.
German business confidence is at a 10-month high and the Bundesbank predicts “quite robust” economic growth for this year. While the outlook for the 19-nation euro area has also improved amid large-scale asset purchases by the European Central Bank, global economic developments and the stand-off between Greece and its creditors risks dragging on the accelerating recovery.
“Domestic demand is the reliable driver of Germany’s growth,” said Johannes Gareis, an economist at Natixis in Frankfurt. “Worries about China and the U.S. but also from the troubles with Russia, continue to weigh.”
Demand was bolstered by above-average bulk orders, the Economy Ministry said. Domestic investment-goods orders rose 5.8 percent in March from the previous month. Those from the euro area were up 7.9 percent, while demand for investment goods from outside the currency region dropped 5.1 percent.
