FRANKFURT: German industrial orders climbed for a second straight month in January, official data showed Tuesday, as Europe’s top economy weathers the fallout from Russia’s war in Ukraine better than expected.
New orders, which provide a foretaste of industrial output, rose 1.0 percent compared to the previous month, federal statistics agency Destatis said.
The figure surprised analysts, who had predicted a decline in factory orders for January.
Destatis said the increase was driven by large orders in aircraft and spacecraft construction from outside the eurozone.
The manufacturing data added to signs “that the current phase of economic weakness will be mild”, the economy ministry said in a statement, noting the “improved business climate in recent months”.
Germany’s economy has proved unexpectedly resilient to the shocks from the Ukraine war, partly thanks to government measures to cushion the impact of higher energy costs and efforts to diversify gas supplies.
After initially forecasting a recession for 2023, the ministry now sees the German economy growing by 0.2 percent this year.
The ministry noted however that the January orders showed a stark difference in how demand was developing at home and abroad.
Factory orders from outside the euro area jumped by 11.2 percent on the previous month, propelled by China’s relaxation of Covid-related restrictions.
Orders within Germany meanwhile fell by 5.3 percent, “showing that the economic weakness continues” at home, said LBBW economist Jens-Oliver Niklasch.
“Once again, it will probably come down to exports to lead the recovery,” he added.
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