German March Factory Orders Rose on Investment, Demand for Consumer Goods.

German factory orders surged more than economists forecast in March on demand for investment and consumer goods at home and abroad.
Orders, adjusted for seasonal swings and inflation, rose 5 percent from February, when they stagnated, the Economy Ministry in Berlin said today. Economists had forecast a 1.4 percent increase, according to the median of 33 estimates in a Bloomberg News survey. From a year earlier, orders gained 26.1 percent.
German companies are boosting output to meet reviving global demand, bolstering the recovery in Europe’s largest economy and stabilizing the job market. Business confidence rose to a two-year high in April and manufacturing growth accelerated. While the Greek budget crisis has shaken markets, it’s also pushed the euro to a one-year low, brightening export prospects.
“Germany has really shaken off the winter blues,” said Alexander Koch, an economist at UniCredit Group in Munich. “The country is benefiting from emerging market demand, and that is also securing jobs.”
The increase was driven by a 5.4 percent jump in domestic orders, with export demand gaining 4.7 percent.

Economic Growth:
German plant and machinery orders rose 21 percent in March from a year earlier, the VDMA machine makers’ association said on April 29, while unemployment fell at the fastest pace in more than two years in April. The economy will grow 1.6 percent this year after a 5 percent contraction in 2009, the Bundesbank has forecast.
Norbert Reithofer, chief executive officer of Bayerische Motoren Werke AG, the world’s biggest maker of luxury vehicles, said on April 23 that the company expects full-year sales in China to beat its previous forecast.
Orders from the 16-nation euro area increased 9.6 percent in March from the previous month, driven by a 16.2 percent surge in investment goods orders and a 5.8 percent gain in demand for consumer goods, today’s report showed.
Global trade will expand 5.8 percent this year after contracting 12.3 percent in 2009, the International Monetary Fund said on Jan. 26.