Higher demand for capital goods at home and abroad drove the biggest monthly increase in German industrial orders in around two and a half years in December.
This suggested that factories will support growth in Europe's biggest economy in the coming months.
The much stronger than expected data, released by the Economy Ministry in Berlin, gave some reassurance that Germany's economic upswing will carry into 2017 despite growing political uncertainties such as a protectionist US trade agenda.
Analysts said the figures were pointing to an overall economic recovery in the euro zone.
Contracts for goods "Made in Germany" were up by 5.2% on the month, the Economy Ministry said.
That was the biggest monthly increase since July 2014 and was far stronger than the Reuters consensus forecast for a rise of 0.5%.
Domestic demand jumped by 6.7% while foreign orders increased by 3.9%, with bookings from euro zone countries soaring by 10%.
The data for November was revised down to a fall of 3.6% from a previously reported drop of 2.5%.
Still, over the full fourth quarter, industrial orders rose by 4.3% on the quarter, the economy ministry said.
"This signals a continued upswing in the industrial sector over the winter," it added.
The overall increase was driven by a jump in demand for capital goods of 9.7%, helped by strong bookings from both domestic customers and euro zone countries.
The strong orders figures followed mixed data after German business morale unexpectedly fell in January, signalling a more downbeat assessment of the outlook for Europe's largest economy.
A survey among German purchasing managers showed last week that private sector growth slowed slightly in January, with weaker activity among services firms limiting overall economic expansion.
Strong private consumption, increased state spending on refugees and higher construction investment helped the German economy to grow by 1.9% in 2016 - the strongest rate in half a decade.
For this year, the government expects an economic slowdown to 1.4% due to fewer workdays and weaker exports.
