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(CEP News) Frankfurt - German factory orders surprised to the upside, rising 3.6% on a monthly basis in August, the German Economics Ministry said on Tuesday. Economists had expected a more modest gain of 0.5% following July's 1.3% decrease, revised up from -1.7%.
"This was the first positive monthly growth since November 2007, but one swallow does not make a summer and the German economy is far from out of the woods as far as recession fears are concerned," Calyon Credit Agricole senior FX strategist Stuart Bennett said in a research note. Disaggregating the figures, the ministry reported that domestic orders rebounded 3.7% in August following July's 2.2% fall, while foreign demand rose 3.5% after falling 0.3% in the previous period. In annualized terms, however, orders dropped 7.6% in August, surpassing the 4.7% fall expected, and follows July's 0.3% decline. Meanwhile, July's figure was revised up from an initial estimate of -0.7%. By Todd Wailoo,
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