German exports increased in March, bouncing back from a decline in February, according to official data released on Tuesday. The federal statistics agency Destatis reported a 0.9 percent month-on-month increase in exports, defying expectations of continued decrease. However, industrial orders fell unexpectedly by 0.4 percent, missing the forecasted rise of 0.45 percent.
ING bank analyst Carsten Brzeski noted that while the export sector showed signs of growth, the weak industrial orders hinted at challenges ahead. The demand from the eurozone supported March orders, but domestic orders dropped by 3.6 percent and orders from the rest of the world decreased by 2.9 percent.
Exports to the European Union and the rest of the world saw increases, while imports to Germany went up by 0.3 percent, resulting in a trade surplus of 22.3 billion euros. Factors such as high inflation, expensive energy, and reduced demand from China have been weighing on Germany’s manufacturing sector in recent months.
Despite the mixed data, the German government remains optimistic about the economy’s outlook for the year. The economy ministry expects incoming orders to rise as domestic and foreign demand recover. The German economy grew by 0.2 percent in the first quarter of the year, avoiding a recession following a weak end to 2023.
