German factories began the year on an upbeat note, with a surprise increase in January orders.
(Bloomberg) — German factories began the year on an upbeat note, with a surprise increase in January orders.
Demand rose 1% from the previous month, compared with a 0.7% decline predicted in a Bloomberg survey. The jump was due to capital goods, particularly aircraft and spacecraft construction and motor vehicle engines, the statistics office said on Tuesday.
German output shrank 0.4% in the final quarter of last year, making a recession on the back of higher energy bills difficult to avoid. Quickly rising borrowing costs that have yet to fully filter through are adding to economic headwinds.
Still, the manufacturing sector in Europe’s biggest economy has some grounds for optimism, underscored by a significant improvement in the expectations of Ifo institute’s survey for February. China’s reopening is likely to bolster such sentiment, raising the prospect of a boon for German exports.
–With assistance from Kristian Siedenburg and Joel Rinneby.
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