Industrial orders in Germany climbed twice as high as predicted in June. Hike in internal demand compensates for slumping foreign orders, and chances are high that this part of EU’s biggest economy will gain momentum in the next few months.
According to the Economy Ministry information, factories delivered data of 1% rise in June contracts, this is after orders for the country’s goods went up by an upwardly revised 1.1% in May. That surpassed the Reuters outlook for a 0.5% growth.
Nordea economist H. Sandte stated that the number of contracts is an integral part of the overall positive state of the economy.
Analysis of the June data demonstrated that internal demand rose by 5.1%, as foreign contracts went down 2%, and the euro zone contracts dipped 2.4%. Sandte also said that foreign orders are normally exceeding internal demand notwithstanding the latest data exhibiting the opposite.
Almost 2 months before the election in Germany in which Chancellor Angela Merkel is going to run for office, the contracts data and prior to them a heap of other positive numbers have emphasized the strength of the country’s economy.