German industrial orders jump on export demand

FRANKFURT AM MAIN (AFP) – New business for German industrial firms climbed in January on strong foreign demand, official data showed yesterday, but domestic orders took a hit from fresh coronavirus restrictions.

Orders rose 1.4 per cent month-on-month, federal statistics office Destatis said in seasonally adjusted figures, rebounding from a 2.2 per cent slump in December.

Compared with January 2020, new orders were up 2.5 per cent, Destatis said.

Industrial orders are closely watched as a key indicator of future economic activity, especially in manufacturing powerhouse Germany.

The month-on-month January increase was driven by a 4.2 per cent jump in new orders from abroad, particularly outside the eurozone, Destatis said.

Within Germany, new orders plunged 2.6 per cent, reflecting the impact of COVID-19 shutdowns that have sapped demand for consumer goods in Europe’s top economy.