June 6, 2018 / 8:05 AM / 16 days ago

Soaring domestic demand powers German engineering order growth

    BERLIN, June 6 (Reuters) - German engineering orders jumped
by 12 percent in April from a year ago with a surge in domestic
demand offsetting a modest decline in contracts from euro zone
partners, the VDMA industry group said on Wednesday.
    Demand from domestic customers surged by 20 percent in real
terms while foreign orders rose by 8 percent overall, the VDMA
said.
    "Domestic demand is humming ... the process of catching up
in investment is continuing unabated," said VDMA chief economist
Ralph Wiechers. 
    Euro zone orders slipped by 2 percent but demand from
countries outside the single-currency bloc was up by 12 percent.
    In the less volatile February-April comparison, orders were
up 6 percent on the year, the VDMA said. Domestic demand grew by
11 percent and foreign orders were up 4 percent, with strongest
growth coming from non-euro zone countries.
    "Despite many dark clouds hanging over the economy, the
German engineering sector is profiting from projects at
customers around the globe," said Wiechers, who reiterated his
forecast for production growth of 5 percent this year.
                   
       APRIL 2018               CHANGE 
         overall                +12 pct
     of which German            +20 pct
     foreign orders             +8 pct
        FEB-APRIL                  
         overall                 +6 pct
     of which German            +11 pct
     foreign orders              +4 pct
 
 (Reporting by Madeline Chambers
Editing by Paul Carrel)
  
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