Strong domestic demand boosts German industrial orders in December

BERLIN, Feb 4 (Reuters) – German industrial orders grew more-than-expected in December, according to data released on Friday, and the boost from stronger domestic demand is a reason for optimism for the outlook for growth. largest European economy.

Goods orders grew 2.8% in the month, seasonally adjusted, after a revised 3.6% rise in November, according to figures from the German Federal Statistical Office.

A Reuters poll of analysts pointed to a smaller rise of 0.5% for the month.

Domestic orders increased 11.7% in the month. Orders from the rest of the euro zone fell 4.2% in December, following a 13.1% rise the previous month.

“Companies are clearly poised for a recovery and are at the starting point for a rally,” said LBBW analyst Jens-Oliver Niklasch.

“What we need now, above all, is an end to coronavirus restrictions and security in supply chains. Then we can expect strong GDP growth this year,” he added.

The German Economy Ministry said the level of the index pointed to dynamic economic development once the high order book could be resolved, with supply bottlenecks expected to gradually dissipate.

“It’s a good rate of growth, but it adds to an already high order book,” said Alexander Krueger, an analyst at private bank Hauck Aufhaeuser Lampe. “The key remains that orders can be processed to a greater extent in the near future.”

German industrial production unexpectedly fell in November as bottlenecks in the supply of raw materials and preliminary materials have caused orders to pile up from German manufacturers.

(Reporting by Miranda Murray and Reinhard Becker; editing by Paul Carrel; translation by Flora Gómez)

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