BERLIN: German industrial orders rose less than expected in February due to weak domestic demand, data showed on Thursday, but the economy ministry said demand should pick up later this year as the world economy remains on a growth path.
The statistics office said last month that German manufacturers are sitting on orders that will take them nearly six months to complete, cushioning them against future shocks resulting from a worsening trade dispute between the world’s two largest economies.
The data showed that the manufacturers’ so-called ‘order range’ was 5.5 months in January, meaning they could carry on producing for nearly half a year even if they received no new orders.
Contracts for “Made in Germany” goods rose by 0.3 percent after falling by an upwardly revised 3.5 percent in January, data from the Federal Statistics Office showed.The reading undershot a Reuters poll of analysts who had predicted a 1.5 percent increase.
“Despite the subdued demand so far this year orders should remain on an upward course,” the economy ministry said in a statement. “The global economy remains in upswing which should keep demand for German industrial goods on a high level.”
But the DIHK Chambers of Commerce and Industry struck a cautionary tone, saying that an escalation of a dispute between China and the United States over import duties could harm the global economy and dampen demand for German goods and services.
