Published on : Feb 06, 2015
Amidst falling oil prices and weakening euro on currency market the manufacturing orders in Germany registered impressive rise in the last quarter of December 2014. With this Germany showcased the evidence of its economic strength.
According to the last collected data from Germany’s economy ministry on Thursday, manufacturing orders in the country rose by an impressive 4.2 percent. The Wall Street Journal recently conducted a poll last week on the expected rise of orders. The economists participating in the poll expected a rise of 1.2% which is much lower than what the sector actually registered.
This steep rise in manufacturing orders indicates the mounting economic momentum in Germany and many other European countries in a time when the Central Bank of Europe is already gearing up to curb deflation by restoring growth in major sectors of the economy. The European Central Bank is all set to adopt significant measures to trigger economic stimulus next month.
The improvement registered in the order books of German manufacturers’ was quite broad-based with 4.8% growth in foreign orders and 3.4 percent increase in domestic orders. Orders from European zone on the other hand rose by 5.9 percent while the orders from currency bloc agglomerations were up by 4.0 percent.
Evelyn Herrmann, Economists in BNP Paribas said that the outlook for the overall production in German manufacturing units is projected to outperform than what it was expected initially, since it takes at least three months for orders to get processed to production. Following this surprise rise in manufacturing orders, the analysts are predicting an increase of 0.3 percent in December’s industrial output.