GERMAN industrial orders rebounded strongly in December, official data showed today, the latest sign Europe’s top economy is proving resilient in the face of shocks from the Ukraine war.

New orders, which provide a foretaste of industrial output, rose 3.2% against the previous month, federal statistics agency Destatis said.

It represents a turnaround from November, when orders fell sharply to their weakest level since mid-2020, as Russia’s invasion of Ukraine took its toll.

Responding to the latest figures, the Economy Ministry said that demand in the manufacturing sector had “stabilised” at the end of last year.

“The latest industrial order data – as well as the improvement in the business climate in recent months – indicate the economic slowdown in winter is likely to be milder,” it said in a statement.

Compared to the previous month, both domestic and foreign orders increased, the ministry said, with orders from the eurozone rising 9.8%.

There were strong increases of orders in sectors including electrical equipment and metal products.

Germany’s export-oriented economy was hit hard after Russia invaded Ukraine in February last year and slashed supplies of gas that had long powered the nation’s factories.

But relief measures lowered energy costs for businesses and consumers, and the government is now predicting that the economy will dodge a recession for the whole of 2023 and eke out weak growth. – AFP, February 6, 2023.