--German Dec manufacturing orders volume unadj up 7.3% on yr
--German Dec foreign orders volume up 4.0% vs Nov
--German Dec domestic orders volume up 1.6% vs Nov
--W German Dec manufacturing orders up 2.1% vs Nov
--E German Dec manufacturing orders up 12.1% vs Nov
--Ministry: German Dec orders mainly due to big ticket orders

By BridgeNews
Berlin--Feb. 7--The volume of German manufacturing orders rose by 2.7% in December from November in seasonally adjusted terms due to "unusual large number of big ticket orders," according to provisional data released Wednesday by the Finance Ministry. It added that stimulation of demand was evident in German orders. The increase, which beat economists' expectations, was mainly due to a 4.0% rise in foreign orders.
* * * A Bridge News/Fokus Deutschland survey of economists forecast manufacturing orders to fall by 1.0% in December from November.
The much stronger-than-expected increase in manufacturing orders for December comes ahead of the German tax reform becoming effective 2001. Ahead of the release, one optimistic economist said he expected orders to rise due to the German tax reform. "Companies should have increased production due to better conditions for consumers," Commerzbank's Christoph Hausen.
Elaborating on the stimulation in demand, the ministry said that already for November the previously reported fall of 0.9% on month had been upward revised by the Bundesbank to a 0.9% increase.
While foreign orders rose by 4.0% on the month, domestic orders advanced by 1.6%, the ministry said.
"The latest, comparatively strong order rise was to a large extend boosted by an unusual large number of big ticket orders," the ministry said.
Based on raw data in non-seasonally adjusted terms, orders rose 7.3% in December on year.
A particular strong rise in orders was recorded for eastern Germany, where the total order volume jumped by 12.1% on month in seasonally adjusted terms compared to 2.1% rise in western Germany.
The two-month comparison of Nov./Dec. with Sept./Oct., used to compensate for monthly volatility, showed orders were up 3.8%, with exports rising by 5.1% compared to a 2.7% increase in domestic orders. Capital goods showed the largest increase, up 9.2%, followed by the 3.1% rise in durable and non-durable goods. End