Euro zone industrial new orders rebounded more than expected in June against the previous month, adding to signs of economic recovery as a strengthening global economy created demand for eurozone goods. Orders rose 3.1 percent month-on-month for a 25.1 percent annual drop, European Union statistics office Eurostat said.
Economists polled by Reuters had expected a 1.5 percent monthly rise and a 28.9 percent annual fall. Industrial new orders point to trends in economic activity as they will translate into production over the coming months. The economy of the 16-country eurozone started shrinking quarter-on-quarter in the second quarter of 2008, hit by a global economic slowdown brought on by a credit crunch.
The second quarter of 2009 was the fifth straight quarter of economic contraction, but only by a smaller than expected 0.1 percent after a 2.5 percent drop in the first quarter. The monthly rebound in June comes after two straight months of declines in orders, with Eurostat revising down May data to a 0.5 percent monthly fall from -0.2 percent and to a 30.3 percent annual drop from -30.1 percent.
The June rise was led by a surge in demand for capital goods, up 5.6 percent, and non-durable consumer goods, up 3.1 percent on the month. Demand for intermediate goods and durable consumer goods remained subdued, down 0.9 and 3.5 percent respectively. Excluding orders for ships, planes and trains, which are volatile, orders were still up 1.9 percent on the month and down 26.7 percent year-on-year, a less pronounced fall than May's 30.3 percent or April's 35 percent.
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