After months of stagnation, German manufacturing is roaring back to life. Manufacturing orders jumped 4.3% from a year ago, exceeding analyst expectations. It seems that Europe’s economic engine is steaming ahead, boosting predictions that Europe may be recovering.
Then again, this number can be pretty volatile, according to analysts from Morgan Stanley’s European research team, so it’s worth taking with a grain of salt, particularly when looking ahead. “2Q seems to have been somewhat better than expected, but the first indications for 3Q (e.g., weak German and French consumption data) suggest flat-lining rather than further improvement,” analyst Daniele Antonucci wrote in a client note ahead of this week’s data.