German factory orders make surprise 1% jump in January

German January factory orders recorded a surprise 1% increase, driven by aircraft orders, official data revealed on Tuesday.

The figure compares with expectations of a 0.7 – 0.9% fall. The unexpected jump was due to a sharp rise in the capital goods sector (up 8.9%), especially aircraft and spacecraft construction and motor vehicle engines, the statistics office said.

Foreign orders increased by 5.5%, while domestic orders slid by 5.3%. Orders from the euro area fell by 2.9%, while orders from the rest of the world surged by 11.2%.

The consumer goods sector recorded a 5.5% decline in new orders.

Reporting by Frank Prenesti for Sharecast.com