The Canadian Press - ONLINE EDITION

German factory orders rebound after 2 declines, indicate economy not taking major Ukraine hit

  • Print

BERLIN - Factory orders in Germany rebounded sharply in July following two monthly falls, official figures showed Thursday, in an indication that Europe's biggest economy is holding up despite the crisis in Ukraine.

The Federal Statistical Office said orders were up 4.6 per cent from the previous month, far better than 1.5 per cent increase widely anticipated in the markets. The increase follows an upwardly adjusted decline of 2.7 per cent in June and a 1.7 per cent fall in May.

The rebound was powered by an above-average number of bulk orders and a 9.8 per cent increase in demand from outside the 18-country eurozone. Orders from inside the eurozone rose only 1.7 per cent after plunging in June.

"So far, there has not been any significant impact on overall hard data stemming from the Russian-Ukrainian crisis," said UniCredit economist Andreas Rees, who noted that the previous two months' declines resulted from a lack of big-ticket orders and other volatility.

After a long period of strong growth, Germany's economy has shown signs of faltering. In the second quarter, it shrank 0.2 per cent from the previous three-month period and concerns that the Ukraine crisis could take a greater toll have escalated as the European Union and Russia have imposed tit-for-tat sanctions.

ING-DiBa economist Carsten Brzeski said the figures pointed to a return to growth in the third quarter and that potential obstacles to German growth don't stem primarily from "geopolitical tensions but rather from longer-than-expected weak demand from eurozone peers."

Though Russia was only Germany's No. 11 trading partner last year, a raft of economic indicators over recent weeks has shown that the crisis in Ukraine is at least having an effect on business confidence.

The resulting effect on investment "is easily the larger problem, because our trade with Russia is not so extensive that we ourselves are affected immediately or strongly by sanctions," Economy Minister Sigmar Gabriel said earlier this week.

_____

David Rising contributed to this report.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Bowman pledges to find efficiencies at City Hall

View more like this

Photo Store Gallery

  • MIKE.DEAL@FREEPRESS.MB.CA 110621 - Tuesday, June 21, 2011 -  Doug Chorney, president Keystone Agricultural Producers flight over South Western Manitoba to check on the condition of farming fields. MIKE DEAL / WINNIPEG FREE PRESS
my2011poy
  • A Canada goose protects her nest full of eggs Monday on campus at the University of Manitoba- Standup photo- Apr 30, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Are you worried Ebola might make its way to Canada?

View Results

View Related Story

Ads by Google