New orders for the German industry have unexpectedly increased further, driven by major orders and the automotive industry. The revision of previous month's figures shows a stronger increase, signaling a positive development after a continuous decline.
The figures from the Federal Statistical Office have exceeded analysts' expectations. In the three-month comparison, there has been a positive growth.
Despite the stabilization, important sentiment indicators have dimmed, suggesting a cautious outlook for the industrial economy in the future. The July order intake for the German industry in Wiesbaden has risen by 2.9%, with major orders in the 'other vehicle construction' sector being the main driver.
The three-month comparison reveals growth and the revised figures from the previous month are higher than expected. The annual comparison also shows a positive trend, with a 3.7% increase.
Analysts had anticipated a decline, making the data from the Federal Statistical Office (Destatis) a pleasant surprise. However, the machine engineering sector experienced a decline in orders.
While the foreign orders increased by 5.1%, the domestic orders remained unchanged. The positive trend in orders suggests a stabilization, but weak foreign demand and declining industry sentiment indicate a persistently weak industrial economy.
