Pantheon Macroeconomics: Germany's March manufacturing orders data brings positive news

Golden Ten Data reported on May 7 that Germany’s March manufacturing orders far exceeded broad market expectations. Claus Vistesen, an analyst at Pantheon Macroeconomics, said in his report that, as soaring energy prices are eroding real income growth and dragging down consumption, this is undoubtedly positive news. He indicated that manufacturing orders in March increased by 5.0% month-on-month, with growth in key sectors such as capital goods, intermediate goods, and consumer goods, illustrating a strong performance in core orders at the end of the first quarter. This may reflect potential support from fiscal stimulus measures, while it is also possible that companies placed orders ahead of schedule to address anticipated supply chain disruptions related to the war with Iran. Vistesen noted that this data is “exactly what is needed right now,” since a large amount of recent survey data reflecting early Q2 conditions has generally been sluggish.