German manufacturing orders rose in June from the previous month, driven by a surge in domestic demand.
The rise underscores the buoyant mood among German businesses, which are benefiting from a recovery in the rest of the eurozone and beyond, and a weak euro currency.
Continue Reading Below
The closely watched Ifo business-sentiment index rose last month to its highest level since German reunification.
Germany's economics ministry said Friday that total orders for the important manufacturing sector increased by 1% compared with May, adjusted for seasonal swings and calendar effects.
Economists polled by The Wall Street Journal had forecast a 0.5% rise.
Domestic orders jumped by 5.1% from the previous month, after sliding in May. Foreign orders retreated, however, falling by 2% from the previous month.
The data point to "a further slight increase in German industrial activity," the economics ministry said.
The German engineering federation in late June raised its output forecast for the plant and machinery sector, citing better-than-expected demand from the eurozone and Asia, especially China.
Write to Tom Fairless at email@example.com
(END) Dow Jones Newswires
August 04, 2017 02:15 ET (06:15 GMT)