German factory orders rebound in July, offsetting 2 consecutive declines

Economic IndicatorsAssociated Press

The Federal Statistical Office says factory orders in Germany rebounded sharply in July, offsetting two consecutive declines in a good sign for Europe's largest economy.

The office said Thursday new orders were up 4.6 percent over June when adjusted for seasonal and working day factors. That followed an upwardly revised 2.7 percent decline in June and 1.6 percent drop in May.

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Germany's economy shrank 0.2 percent in the second quarter and there has been growing concern the crisis in Ukraine could take a greater toll.

ING-DiBa economist Carsten Brzeski says the new figures are a "sign of relief," showing the economy should return to growth in the third quarter.

He says a marginal 1.7 percent rise in eurozone orders indicates Germany's greatest downside risk is weak demand from Europe.