In March a bounce is expected in German factory orders of 0.8% mom, following a weaker than expected outcome in February (-0.9% mom). While foreign orders should recover more strongly (by around 1.1% mom), domestic orders could be more muted. March surveys appear to have been characterized by a stronger momentum, so some upside risks are probably appropriate. “As the industry, and trade, is still lagging behind somewhat in the recovery, we should see some further strengthening into Q2 at the same time as domestic conditions could weaken, to come in line with more sustainable GDP growth rates”, says Societe Generale.
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