German industrial orders up less than expected in March
BERLIN (Reuters) - Strong domestic demand pushed German industrial orders up in March but weak bookings from abroad weighed on the figures, suggesting only a modest start to the year for the manufacturing sector in Europe's largest economy.
Orders increased by 0.9 percent on the month, data from the Economy Ministry showed, but that fell short of expectations for a 1.5 percent rise, according to a Reuters poll.
"Weak orders in the first quarter of 2015 warrant a little bit of caution for the short-term growth outlook of Germany’s manufacturing backbone," said Berenberg economist Christian Schulz, adding that a weaker euro had not helped volumes.
He said temporary weakness in some export markets, including the United States, Britain and China, as well as sluggish growth in France, may have contributed to the weakness in the first quarter.
Solid domestic demand for capital and investment goods lifted the overall figure while orders for consumer goods fell 2.2 percent. Bulk contracts rebounded after several weak months, said the ministry.
"A positive business climate and increase in domestic orders point to a positive underlying trend in the industrial sector," said the ministry, adding that weaker demand from abroad had nevertheless led to only a modest start to the year.
The German government last month raised its growth forecast for this year to 1.8 percent, due partly to lower oil prices, buoyant domestic demand and a lower euro exchange rate.
The data for February was confirmed as having fallen by 0.9 percent.
(Reporting by Madeline Chambers and Caroline Copley; Editing by Gareth Jones)
