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UPDATE 1-Big German orders revision lifts growth prospects

Published 01/22/2010, 08:32 AM
Updated 01/22/2010, 08:39 AM

* Revised Nov data shows +2.8 pct m/m, previous +0.2 pct

* Jump will likely have impact on GDP growth

* Demand outside euro zone for car sector goods

(Adds detail, economist comment)

BERLIN, Jan 22 (Reuters) - Foreign demand for German investment goods in November was stronger than initially reported, the Economy Ministry said on Friday, in a revision to orders data that will likely give a slight boost to growth.

German manufacturing orders rose 2.8 percent month-on-month, up from a previously reported gain of 0.2 percent, the ministry said. The increase was chiefly due to a correction in the volume of investment goods ordered from outside the euro zone.

Analysts said the figures were a welcome boost for Europe's largest economy, which suffered a record contraction of 5.0 percent last year, according to preliminary official data.

"The economic prospects for Germany have improved for the first quarter," Gernot Griebling, an economist at LBBW said. "Also, GDP for the fourth quarter of 2009 should be better than the stagnation forecast by the statistics office," he added.

Manufacturing orders data for October were not revised. The Federal Statistics Office said the November revision was linked to orders booked in the automobile industry.

"Germany is profiting from the revival of world trade, above all in investment goods," said Thomas Amend, an analyst at HSBC Trinkaus. "Products made in Germany are sought after."

According to the new data, capital goods orders from outside the euro zone rose 6.2 percent in November. This compared with a previously reported 6.7 percent drop. [ID:nLDE60L13L]

Earlier this month the statistics office estimated overall economic growth probably slowed to around zero in the fourth quarter [ID:nLDE60C0IL]. The government has said it could also be unchanged in the first quarter.

A Reuters poll published on Thursday showed economists expecting GDP growth to ease slightly on a quarterly basis to 0.2 percent in the first three months of the year, from 0.3 percent in the previous quarter. [ID:nLAG006059] (Reporting by Brian Rohan, Dave Graham, Sarah Marsh and Christina Amann; editing by Patrick Graham)

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