- German Economics Ministry
German factory orders rose for a second month in a row in April, the Economics Ministry said. Factory orders increased by 1.4%, three times as much as economists had expected for the month and marking the strongest monthly gain in half a year. The robust performance in April was attributable to a 5.5% increase in orders from abroad. Demand in other Euro zone nations was particularly strong, increasing by 6.8% in April in the single-currency area that receives 40% of overall German exports. In the previous month, the gauge rose a revised 1.1%. On a yearly basis, the gauge gained 0.4% in the reported month, after posting a revised 2.0% gain in the previous month, measured on a non-seasonally adjusted basis.
Meanwhile, the Bundesbank increased its forecasts for German economic growth this year and next as record-low unemployment and a recovering Euro zone spur consumption. The German central bank sees gross domestic product growing 1.7% in 2015 and 1.8% in 2016. That compares with December estimates of 1% and 1.6%, respectively. Germany, Europe's number one economy, is benefiting from accelerating job creation and the Euro bloc that is being revived by ECB QE programme and lower oil prices. The ECB kept its growth forecast for the currency bloc unchanged for 2015 and 2016 at 1.5% and 1.9%, respectively. It slightly cut its outlook for 2017 to 2% growth from 2.1%.
© Dukascopy Bank SA