Germany industrial orders rise 3.4 percent in February after slump in the previous month

German industrial orders picked up in February, rising 3.4 percent after plummeting the previous month, Economy Ministry data showed on Thursday. Data missed forecast for a 4.0 percent increase but followed an upwardly revised drop of 6.8 percent in the previous month.

Strongest surge in domestic demand seen as the main driver. Companies in Germany ordered 8.1 percent more goods than they ordered in January, when they had significantly scaled back orders. That said, foreign orders failed to make a positive contribution. Data showed bookings from the euro zone fell by 2.4 percent while non-euro zone contracts increased by 1.6 percent.

The data follows a survey that showed manufacturing growth reached its highest level in almost six years in March and suggested the sector will contribute to an economic expansion in the first quarter.

"German new orders have woken up from hibernation," said ING economist Carsten Brzeski, adding that bookings seemed to be extremely sensitive to seasons and the weather.