Germany’s manufacturing orders rose by more than expected in December, driven by an increase in exports to countries outside the euro zone. This shows signs that Europe’s largest economy is stable during the euro zone debt crisis and could avoid a deep recession.
The industrial order index is a leading indicator of production since rising purchase orders signal that manufacturers will increase activity as they work to fill the orders.
Based on the data, December orders jumped 1.7 percent versus a drop of 4.9 percent in November, the German Economy Ministry reported today. Forecasts were for an increase of mere 1 percent on a monthly basis. Data are adjusted for seasonal swings and inflation.
On yearly basis, industrial orders remain unchanged in December 2011 compared to December 2010.
From a year ago, orders were unchanged in December when adjusted for work days.
The report shows that factory orders from outside the euro area jumped 12.3 percent, more than compensating for their 10 percent decline in November. Meanwhile, orders from within the euro zone fell 6.8 percent in the month as many member countries grapple with the debt crisis.