German Machine-Tool Sector Rebounds

Rising demand both at home and abroad gave Germany's key mechanical engineering sector a boost in April, fueling hopes it can put its weak start to the year behind it, the industry federation said Monday.

Incoming orders rose by 8.0 percent in April compared with the same month in 2012, the VDMA association said, with domestic orders rising by 6.0 percent and export orders up as much as 10 percent.

The data provide a snapshot of activity in a crucial sector of Europe's biggest economy.

"At last, an increase after what has been a rather disappointing first quarter," said VDMA chief economist Ralph Wiechers.

"The April numbers aren't enough just yet to bring about a turnaround back to growth. But rising export demand in particular provides hope that machine-tool customers will soon abandon their current reticence," Wiechers said.

Taking a three-month comparison to iron out short-term fluctuations, overall orders inched up by 1.0 percent in the period from February to April, with foreign orders rising by 3.0 percent, while domestic orders declined by 3.0 percent, VDMA calculated.