Data gathered by the Economy Ministry shows that due to the fact that demand from abroad picked up the German industrial orders unexpectedly rose in May.
This means that Europe’s largest economy remains relatively unaffected by the euro zone debt crisis. In May price-adjusted order intake rose 0.6%, above the poll made by 37 economists according to which orders were to remain unchanged on the month. The Economy Ministry declared that this increase was due to a 2.3% rose in foreign contracts, driven by several orders from the euro zone. The April data was revised to a 1.4% drop from a previously reported 1.9% drop.
“The overall industrial order situation in Germany remains favorable,” said the ministry in a statement.”The conditions for German industry remain good for the moment in an environment characterized by growing uncertainty.”
On Monday, July 2nd, the private Institute for Supply Management announced that activity in the manufacturing sector decreased in June for the first time in the last three years. The Commerce Department also reported that new orders outside transportation increased 0.4%, machinery 4.2% and household appliances 2.0%.