FRANKFURT (MktNews) - German industry began 2001 in "quite good" shape despite the overall "unfavourable" international environment, the Bundesbank said in its monthly report for March.
While new manufacturing orders slowed sharply in January from the large increase posted in December, overall demand in the two months combined rose 0.5% compared to the two previous months and stood fully 11.5% above the year-earlier level.
Still, the Bundesbank noted that German GDP growth "cooled off" in the second half of last year, due largely to the effects of higher oil prices.
A worsening of the terms of trade "clearly" put a brake not only on the real income of private households but also the profit margins of German companies in the fourth quarter, the central bank said.
Seasonally and inflation adjusted private consumption in the fourth quarter stagnated at the "already lower" level of the third quarter, the Bundesbank said. In addition, the previously lively investment in machinery and computer equipment became "rather subdued" in the fourth quarter.