Germany reported a rise in manufacturing orders in May, alleviating fears of cooling demand for goods from the eurozone’s largest economy.
Factory orders rose by 1 percent in May, reversing April’s 2.2 percent decline. Foreign orders jumped by 3 percent, including a 1.7 percent rise in orders from other eurozone countries.
Domestic demand, however, dropped by 1.7 percent. However, Germany remains confident that its manufacturing sector remains strong:
“The solid development in orders, as well as the excellent business climate, signal further moderate upward momentum in manufacturing.”
Dirk Schlotboeller, an economist at Germany’s Chambers of Commerce (DIHK), told Reuters:
“The German industrial sector is back in form and the decline in April was likely a one-off.
Asian markets fall
Hawkish Federal Reserve minutes and a steep drop in oil prices during US trading hours pushed Asian markets down on Thursday, with the yen strengthening.
Japan’s benchmark Nikkei fell 0.5 percent, withbBoth South Korea’s Kospi and Australian shares closing flat.