Germany hit by fall in industry orders

The drop in seasonally and price-adjusted order intake was the strongest since November, according to data from the Economy Ministry, comparing with a consensus forecast in a Reuters poll of 38 economists for a 1 per cent fall.

Recent data has painted a mixed picture of the German economy. Sentiment surveys have improved and exports, imports and output have all risen, although unemployment has also edged up and retail sales have fallen.

“The details disappoint on many levels,” said Thomas Gitzel, an economist at VP Bank, pointing to the 3.2 per cent fall in domestic orders and the 3.6 per cent drop in orders from the eurozone, struggling through the fourth year of its debt crisis.

“The German economy is unsteady. As long as the ailing eurozone countries are not back on their feet, this will likely remain the case.”

Orders had risen 2.3 per cent in the previous month, the ministry said, revising the figure upwards from an initial estimate by 0.1 percentage points. Orders have risen in three of the last six months.

The German economy is still outperforming peers within the eurozone. Separate data showed the unemployment rate in the bloc’s number two economy France hitting a 14-year high in the first quarter of 2013, while joblessness is still near its lowest since reunification in Germany.