FRANKFURT: Export orders for Germany’s important manufacturing industry rose sharply in June in a trend that should bolster industrial production in Europe’s largest economy over the next few months, despite a slowing Chinese economy and lingering concerns about Greek debt.
Data from Germany’s economics ministry showed Thursday that manufacturing orders, adjusted for seasonal swings and inflation, surged 2.0% in June from the previous month, bringing the volume of total orders back to levels last seen in April 2008.
“The trend in orders is clearly pointing upwards,” indicating an ongoing, albeit modest, expansion in German industry, the ministry said.
But economists warned that the data—beating forecasts of a 0.2% monthly increase—were inflated by an unusually high volume of bulk orders.
AIDA Cruises, a German cruise line which belongs to Carnival Corporation, placed orders in June for two new ships with Meyer Werft in Lower Saxony. Airbus Group SE, which builds single-aisle planes in Germany, also reported strong aircraft orders during June’s Paris Air Show.
“Excluding such effects, demand was up a more moderate 0.3%,” said Andreas Rees, UniCredit’s chief German economist.
