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German Factory Orders Rise Again

May 6, 2005

After two months of decline, factory orders in Germany in March have exceeded expectations. Orders rose 2.2 percent from February, when they declined 2 percent, the Economy and Labor Ministry in Berlin said today, according to Bloomberg news service. Experts had expected orders only to rise 0.1 percent, the median of 40 forecasts in a Bloomberg survey showed. But analysts were cautious about the country's economic outlook in the longer term. "Against the background of consistently falling business sentiment, this is likely to have been a one-off spike,'' said Simon Hayley, an economist at Capital Economics in London, according to Bloomberg. "The underlying trend remains for German growth to stagnate, and it will take more than a single good quarter to shake this belief."

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