German Industrial Orders Rise on Strong Domestic Demand in February

Data showed that German industrial orders rose for the second consecutive month in February, driven by strong domestic demand, in another indication that manufacturers are about to cushion the impact of the pandemic-related decline in production in general in the first quarter.

But the growth prospects for Europe’s largest economy are still shrouded in uncertainty due to the most contagious virus strains and the rapid rise in COVID-19 cases, which could force the authorities to tighten restrictions again in the coming weeks.

The data published by the Federal Statistics Office reveals that orders for manufactured goods in Germany increased on a rate basis in light of seasonal factors by 1.2% on a monthly basis, in line with Reuters expectations.

The strong increase in February comes after a revised rise, down to 0.8%, in January.

Domestic orders jumped 4% month-on-month in February, while outpatient clinics dropped 0.5%. But orders from euro-zone countries increased 2.7%.