German manufacturing orders rise

Germany's manufacturing orders shot up for a second consecutive month in June on the back of a surge in demand from its euro …

Germany's manufacturing orders shot up for a second consecutive month in June on the back of a surge in demand from its euro zone partners.

Orders rose 4.6 per cent on the month in June in real and seasonally adjusted terms, preliminary data showed.

Economists said the figures demonstrated German firms were coping with the strong euro and that industrial output would likely remain buoyant in coming months.

June's gain was the strongest since December 2004 and followed May's revised increase of 3 per cent. According to calculations based on Bundesbank data, orders were up 4.1 per cent on the quarter in the April - June period.

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Some German manufacturers, including BMW, have complained the strong euro is hurting their export business.

The euro has gained about 4 per cent against the US dollar since the start of the year and on Monday was within sight of its record high at $1.3850 scaled two weeks ago.

Domestic orders were up 0.3 per cent on the month in June, after a gain of 2 per cent in May, while foreign orders surged 8.7 per cent, the biggest rise since the beginning of 2003, after an increase of 4.1 per cent the previous month.

Orders from abroad for capital goods rose 13.2 per cent, with orders from Germany's partners in the euro region leaping 38.5 per cent.