By Maria Martinez
German manufacturing orders rose in June more than expected, despite widespread supply shortages.
Manufacturing orders increased 4.1% on month in June in adjusted terms, following a revised 3.2% drop in May, according to data from federal statistics office Destatis released Thursday.
Economists polled by The Wall Street Journal had expected orders to grow 1.5% on month in June.
Domestic orders increased 9.6% on month, while foreign orders increased 0.4%, Destatis said. New orders from the eurozone increased 1.3% and new orders from other countries fell 0.2% compared with May.
On an annual basis, orders rose 26.2% in June, adjusted for calendar and price effects. They were 11.2% higher compared with levels in February 2020, which was the last month before the pandemic hit Europe, the statistics office said.
The German manufacturing sector has performed strongly in recent months, fueled by external demand amid the global economic snapback from the pandemic. However, manufacturers are struggling with widespread supply shortages of parts and raw materials, which hinder production and drive up costs, according to recent surveys.
German industrial production data for June is due to be published Friday.
Write to Maria Martinez at maria.martinez@wsj.com