Germany's Industrial Orders Showed Unexpected Growth In May
German industrial orders rose more-than-expected in May, after four consecutive monthly decreases. The Germany’s Federal Statistics Office reported, that industrial orders grew by 2.6% in May after an upwardly revised drop of 1.6% the previous month. Analysts had predicted a 1.1% growth. The rise in May was mainly driven by demand from other Eurozone countries and domestic clients. A breakdown of the figures showed that orders for capital goods and consumer goods jumped the most.
The Germany’s Economy Ministry expects, that industrial output will continue to rise moderately in coming months. The Ministry also said the four monthly drops from January to April were a consequence of a strong jump in orders in the second half of 2017.
Meanwhile, the International Monetary Fund cut its 2018 forecast for German GDP growth to 2.2%. The IMF noted, that rising protectionism and the threat of a hard Brexit had exposed Europe's biggest economy to significant short-term risks.