BERLIN, April 8 (Xinhua) -- Germany's industrial orders rebounded in February from a sharp drop at the start of the year, official data showed Wednesday, though authorities warned that escalating tensions in the Middle East could dampen the upturn.
New orders in manufacturing rose 0.9 percent month-on-month, according to the Federal Statistical Office (Destatis). That followed a steep 11.1 percent decline in January, when large-scale orders in sectors such as machinery and metal processing fell sharply.
The February rebound was driven primarily by foreign demand, which climbed 4.7 percent, while domestic orders extended their slide, falling by 4.4 percent after a 16.2 percent slump in January.
"Order intake in manufacturing remains volatile," the Federal Ministry for Economic Affairs and Energy said in a statement on Wednesday, adding that incoming orders were still following a modest upward trend over the past six months, though growth remained cautious.
The ministry cautioned that February's figures largely reflected conditions before the recent escalation of Middle East tensions. The resulting surge in energy prices now threatens to drag on industrial activity in Europe's largest economy, potentially derailing a fragile recovery.
