FRANKFURT, Feb 06 (AFP): German industrial orders rebounded more than expected in December, data showed Thursday, but officials cautioned it was unlikely the start of a sustained turnaround for Europe's struggling top economy.
New orders, closely watched as an indicator of future business activity in Germany, rose 6.9 per cent month-on-month, according to preliminary data from federal statistics agency Destatis.
It was higher than a 1.6 per cent rise forecast by analysts surveyed by FactSet, and followed a fall of 5.2 per cent in November.
Overall for 2024, however, factory orders fell three per cent compared to the previous year, Destatis said.
Weak global demand, fierce competition from China and high energy prices have battered Germany's industrial sector, which accounts for about one fifth of its economic output.
December's jump was driven by orders for the manufacturing of transport equipment, including aircraft, ships, trains and military vehicles, which were up more than 50 per cent from a month earlier.
But the economy ministry played down the significance of the strong rise, noting orders had been stagnant overall in recent months and that "there are still no signs of a turnaround in industry."
LBBW bank analyst Jens-Oliver Niklasch added it was "doubtful" that recent rises in orders indicated a strong recovery was in sight.
"The real test for German industry is coming now with the start of the expected trade conflict with the United States," Niklasch said.
President Donald Trump has threatened to hit the European Union with sweeping tariffs as the bloc runs a hefty trade surplus with the United States.
