BERLIN: Higher demand from abroad drove a bigger-than-expected rebound in German industrial orders in November, in rare good news for manufacturers suffering from supply bottlenecks and labour shortages in Europe’s largest economy.

Goods orders rose 3.7 per cent on the month in seasonally adjusted terms after a revised drop of 5.8 per cent in October, figures from the Federal Statistics Office showed on Thursday, report agencies.

“This provides a positive impetus for the economic outlook, although economic activity continues to be burdened by existing delivery bottlenecks,” the economy ministry said.

In contrast to previous months, orders for large-ticket items such as planes did not have a big impact on the headline figure in November. Excluding this special factor, industrial orders rose 3.8 per cent on the month, the ministry said.

“The upturn in foreign business is particularly encouraging, especially since delivery bottlenecks seem to be easing,” said Alexander Krueger, an analyst with private bank Hauck Aufhaeuser Lampe. But Krueger cautioned that supply chain problems would likely persist well into spring, until delivery logistics functioned more smoothly again.

Economic institutes expect the German economy to have shrunk in the final 3 months of 2021 and to stagnate in the first 3 months of 2022, delaying the recovery from the Covid-19 pandemic.

In the medium term, business prospects for companies manufacturing industrial machinery look bright in light of the shift towards a greener and more digitalised economy.