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German industrial orders bounce back on strong foreign demand

Thursday, January 6, 2022
German industrial orders bounce back on strong foreign demand © Reuters. FILE PHOTO: A worker connects the battery during the assembly of an e-Golf electric car at the new production line of the Transparent Factory of German carmaker Volkswagen in Dresden, Germany March 30, 2017. REUTERS/Fabrizio Bensch/File Photo

BERLIN (Reuters) - Higher demand from abroad drove a bigger-than-expected rebound in German industrial orders in November, data showed on Thursday, in rare good news for manufacturers suffering from supply bottlenecks and labour shortages in Europe's largest economy.

Orders for goods 'Made in Germany' rose 3.7% on the month in seasonally adjusted terms after a revised drop of 5.8% in October, figures from the Federal Statistics Office showed.

A Reuters poll of analysts had pointed to a smaller increase of 2.1% on the month.

The rise was driven by a surge in foreign demand for capital and intermediate goods, with orders from other euro zone countries jumping 13.1% and bookings from clients outside the single currency bloc up 5%.

"This provides a positive impetus for the economic outlook, although economic activity continues to be burdened by existing delivery bottlenecks," the economy ministry said.

In contrast to previous months, orders for large-ticket items such as planes did not have a big impact on the headline figure in November. Excluding this special factors, industrial orders rose 3.8% on the month, the ministry said.

"The upturn in foreign business is particularly encouraging, especially since delivery bottlenecks seem to be easing," said Alexander Krueger, an analyst with private bank Hauck Aufhaeuser Lampe.

But Krueger cautioned that supply chain problems would likely persist and it could take several more months until delivery logistics functioned more smoothly again.

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18-01-2022 11:46:01 (UTC+7)

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