By Rachel More
(Reuters) -German exports rebounded in March, buoyed by strong U.S. and Chinese demand for German-made goods, but a disappointing month for industrial orders dashed hopes for a swift economic recovery.
Germany exported 0.9% more goods in March compared to the previous month, the federal statistics office said on Tuesday, stronger than the 0.4% expected by analysts in a Reuters poll.
This followed a revised 1.6% decline in exports in February, which had prompted Germany's BGA trade association to warn that falling competitiveness and rising protectionism were taking their toll on the export-focused economy.
March exports were buoyed by demand in the United States and China, which climbed 3.6% and 3.7%, respectively.
While the trade rebound spurred optimism, an unexpected fall in industrial orders painted a mixed picture for the economy.
Industrial orders fell 0.4% on the month in March, the statistics office reported, missing a forecast increase of 0.4%.
"The order situation is bringing economic optimists back down to earth," said Alexander Krueger, chief economist at the bank Hauck Aufhaeuser Lampe.
"Exports are maintaining a favourable level. Ultimately, however, it is also the imports that are boosting the trade balance. As things stand, foreign trade will continue to provide growth impetus in the current quarter," Krueger said.
Imports grew 0.3% on the month, the statistics office said, following a revised 3.0% rise in February.
The foreign trade balance showed a surplus of 22.3 billion euros in March, compared with a forecast 22.2 billion euros and 21.4 billion in the previous month.
Commerzbank (ETR:CBKG)'s Joerg Kraemer said weak industrial orders indicated that gross domestic product would not post strong growth in the second quarter, after Germany dodged a recession in the first three months of the year with 0.2% growth.