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German industry regained strength in April

German economy - Figures sign of continued strength
German economy - Figures sign of continued strength

Official figures show that German industrial orders bounced back in April, suggesting Europe's biggest economy continues to perform well.

Industrial orders rose 2.8% in April from March, the government said, topping the 1.9% expected by analysts.

In March, orders for German industrial goods fell a revised 2.7%, the first drop this year but much better than the initially reported fall of 4%.

In April, foreign orders gained 3.4% while those from within Germany were 2.1% higher, the provisional data showed.

A breakdown by sector indicated that the strongest increase came from investment goods used in the production of final products, a 4.9% hike that signalled sustained demand for machine tools and other German speciality goods.

The German economy is expected to expand by 2.6% this year following growth of 3.6% in 2010 but Chancellor Angela Merkel has indicated the forecast could be raised above 3% in the coming months.