German industrial orders up

German industrial orders rose by 4.2 percent in December month-on-month, the National Statistics Office (Destatis) reported Thursday.

The Economy Ministry said the volume of new orders reached its highest level since 2008 thanks to increased demand both domestically and abroad.

"That's big-bang news for the industry," Unicredit economist Andreas Rees told Reuters. "There can be no doubt now – we're witnessing an economic pickup."

Sustainable upswing?

Destatis said foreign orders jumped by 4.8 percent, while domestic demand rose by 3.4 percent in December, after having dipped by 4.5 percent in the previous month.

Manufacturers of intermediate goods recorded increases of orders of 2.8 percent, while the makers of capital goods logged a 5.7-percent surge. By contrast, demand for consumer goods was down slightly.

"Overall, the figures are very positive," BayernLB's Christiane von Berg commented. "But you shouldn't really overestimate the results of just one month, considering the volatility of the market."

hg/pad (Reuters, dpa)