Surge in German factory orders bolsters hope for recovery

BERLIN (AP) — German factory orders surged in June, according to figures released yesterday, giving hope that Europe’s largest economy is on track for a recovery from declines suffered from the coronavirus pandemic lockdown earlier in the year.

Industrial orders rose by 27.9 per cent in June over the previous month, according to figures from the Economy Ministry adjusted for seasonal and calendar factors. That was more than double the increase economists had expected, and followed an already strong 10.4 per cent increase in May.

ING Bank Chief Economist Carsten Brzeski noted that after the lifting of lockdown measures in April, it was mainly private consumption in Germany that rose strongly, while industrial activity had been lagging behind.

Cars and trucks drive on the main highway around Frankfurt, Germany. PHOTO: AP