- Economist at Deutsche Postbank AG
The number of orders at German factories jumped for a second month in March, raising hopes that Europe's largest economy is on the path of recovery. The German Economy Ministry said that orders, adjusted for seasonal swings and inflation, surged 2.2% from February, when they also advanced 2.2%. Analysts, however, expected reading to fall 0.4%, as the 17-nation economy does not show signs of any improvement even despite all the measures done the ECB. The report also showed that exports orders for German exports rose 2.7% in March, with those from the Eurozone surging 4.2% unexpectedly, while domestic sales gained 1.8%.
"Today's data are an extremely positive surprise," said Heinrich Bayer, an economist at Deutsche Postbank AG in Bonn. "They give reason to hope not only that German industry will emerge from its trough, but also that the euro area could be on the brink of an economic recovery, even if only a moderate one."
"The risks surrounding the economic outlook for the euro area continue to be on the downside," European Central Bank President Mario Draghi said last week after the ECB lowered its benchmark interest rate to a record low of 0.5%.
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