- Frederik Ducrozet, an economist at Credit Agricole SA
The number of German factory orders rose more than initially was expected in December due to a marked rise in demand from the Eurozone, indicating that the impact of the ongoing sovereign debt crisis on Europe's largest economy is easing. Orders, adjusted for seasonal swings and inflation, added 0.8% from November, when they fell 1.8%, and above analysts' expectations of a 0.7% growth. The improvement was mostly supported by the 7% gain in the number of orders from the Eurozone. The latest data is adding to signs that the German economy is starting to improve, while rising demand in the currency bloc would bolster growth in Germany as well and help it rebound from a contraction in the final quarter of 2012.
"It's good news that the increase in euro-area orders was so big," said Frederik Ducrozet, an economist at Credit Agricole SA in Paris. "It's too early to declare a recovery in the euro area, but for Germany this could be the beginning of some good hard data in the first quarter."
"Together with the improvement in the business climate in recent months, early indicators signal an imminent end to the weak phase in the industrial sector," the Economy Ministry in Berlin said Wednesday. Today's data are "a good sign for production this year."
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