German manufacturing orders rose by 3.2 per cent on the month in June, official data showed today, surpassing expectations thanks to strong foreign demand that is driving the recovery in Europe's largest economy.
The euro hit a session high against the dollar on news of the rise, more than double the mid-range forecast in a Reuters poll of economists for a 1.5 per cent increase, and Germany's DAX blue-chip share index hit a 2-year high.
June's rise in orders - boosted by big orders for planes and trains - rounded out a strengthening in demand over the second quarter, when orders rose by 7.7 per cent from the first three months of the year, the Economy Ministry said.
Today's figures showed a 0.3 per cent rise in domestic orders and a 5.7 per cent increase in those from abroad. May's decline in orders was revised to a 0.1 per cent dip from a fall of 0.5 per cent previously reported.
The rise in orders added to evidence that an export-driven recovery is helping Germany to grow faster than expected, leaving behind poorer euro zone countries hit by a sovereign debt crisis that they are still battling to overcome.
A purchasing managers' survey released yesterday showed strong growth in the services sector in Germany but weakness in southern Europe. German business morale also leapt last month to its highest level in three years.
Orders from the euro zone rose 11.3 percent in June.
Unless German demand for goods and services from other euro zone states rises too, Germany could grow at its peers' expense. German retail sales fell in June, showing consumers' reluctance to spend despite the recovery.
Reuters