German Machinery Orders Up

A boom in export orders led German plant and machinery contracts to increase by 23 percent in May, according to the VDMA plant and machinery industry association. Foreign orders increased 34 percent in May -- a sign that the label "Made in Germany" is still a strong draw, the VDMA said. In comparison, domestic orders rose by only 4 percent. "The May result for domestic orders is rather modest compared with last month," VDMA chief economist Ralph Wiechers said in a statement. "Large plant orders again boosted the volume of orders. Still, the economic pick up in the euro area is lagging." Due to the success on the exports market, the VDMA has doubled its production forecast for this year from 2 to 4 percent.