German manufacturing orders rebounded in May, albeit by less than expected, depressed by a relatively low share of bulk orders.
Germany's economics ministry said Thursday that total orders for the important sector increased by 1.0% compared with April, adjusted for seasonal swings and calendar effects. Economists polled by The Wall Street Journal had forecast a 1.9% rise.
Foreign orders in May surged 3.1% on the month, after a sharp drop in April. But domestic orders fell for the third consecutive month, as demand declined 1.9% compared with April.
The ministry said that the data point to a continuation in the "slight upward trend" in German industrial activity.
The mood among German businesses has been strong, and Germany's VMDA 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.
Europe's largest engineering group now forecasts a 3% increase in production this year, in real terms, compared with an earlier estimate of a 1% gain.
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(END) Dow Jones Newswires
July 06, 2017 02:29 ET (06:29 GMT)