London: German factory orders unexpectedly jumped for a second month in April as the weaker euro boosted export demand and companies increased investment.
Orders, adjusted for seasonal swings and inflation, rose 2.8 per cent from March, when they surged 5.1 per cent, the Economy Ministry in Berlin said.
Economists had forecast a 0.4 per cent drop, according to the median of 34 estimates in a Bloomberg News survey.
Orders gained 29.6 per cent from a year earlier.
Europe's sovereign debt crisis has pushed the euro down 20 per cent against the dollar since late November.
This was making exports to countries outside the 16-nation currency bloc more competitive.
While budget cuts across the region may crimp economic growth, German factories were ramping up production to meet booming foreign orders and a rebound in domestic investment. "The weaker euro is really kicking in now and Germany has a dominant position when comes to making the machines that power the global economy," said ING Group economist Carsten Brzeski said in Brussels. The second quarter will be strong.
