German factory orders rebound on stronger eurozone demand
German factory orders rebounded in May as strong demand from the euro area countries dwarfed the retreat in domestic demand.
Orders advanced 1.0 percent in May, following a 2.2 percent decline in April, while analysts had predicted a 1.9 percent rise.
Orders from euro area countries edged up 1.7 percent, compensating a similar drop in domestic demand, whilst total foreign orders increased by 3 percent. From a year earlier, orders were 3.7 percent up.
“The solid development in orders, as well as the excellent business climate, signal further moderate upward momentum in manufacturing,” the Economy Ministry explained.
Industrial production data due on Friday may signal a 0.2 percent surge in May after a 0.8 percent rise in April.
Robust domestic as well as foreign manufacturing demand will yield in strong growth in the second quarter, according to the Bundesbank.
As of 07:30 GMT, the
euro traded higher for the first time in six sessions against the U.S. dollar
at 1.1350 after hitting a bottom of 1.1312.