Germany: New orders increased by 2.6% in May - ING

Carsten Brzeski, Chief Economist at ING, points out that after four consecutive drops and the worst performance since late-2012, German new orders finally showed some signs of life in May.

Key Quotes

“New orders increased by 2.6% MoM, from -2.5% MoM in April; the best performance since August last year. On the year, new orders were up by 4.4%, from 0.8% in April.”

“The biggest driver of today’s increase were domestic orders (+4.3% MoM) and orders from other Eurozone countries (+6.7% MoM). Other foreign orders dropped by 1.3% MoM.”

“After yesterday's better-than-expected PMIs for June, these new orders data brings more positive news from the German economy.”

“It will take until June before the economy will finally show its real face. Chances are gradually increasing that it will be a beautiful sight.”