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Carsten Brzeski, Chief Economist at ING, points out that after four consecutive drops and the worst performance since late-2012, German new orders finally showed some signs of life in May.

Key Quotes

“New orders increased by 2.6% MoM, from -2.5% MoM in April; the best performance since August last year. On the year, new orders were up by 4.4%, from 0.8% in April.”

“The biggest driver of today’s increase were domestic orders (+4.3% MoM) and orders from other Eurozone countries (+6.7% MoM). Other foreign orders dropped by 1.3% MoM.”

“After yesterday’s better-than-expected PMIs for June, these new orders data brings more positive news from the German economy.”

“It will take until June before the economy will finally show its real face. Chances are gradually increasing that it will be a beautiful sight.”