4 September 2006, 17:35  German factory orders, industry output probably rose

Industrial production and factory orders in Germany, Europe's largest economy, probably rose in July after corporate investment and exports increased, surveys of economists show. Orders may have risen 1 percent from June, when they fell 0.5 percent, according to the median estimate of 43 economists in a Bloomberg News survey. Production probably rose 0.5 percent after declining 0.4 percent in June, another survey shows. The German economy is on course for the fastest expansion since 2000 as companies invest and hire, bolstering consumer spending. Growth may slow next year as an increase in sales tax saps prospects for household purchases and near-record oil prices and an appreciating euro weigh on earnings. ``Demand from home and abroad is robust, but will cool slightly over the coming months,'' said Rainer Sartoris, an economist at HSBC Trinkaus & Burkhardt in Dusseldorf, Germany. ``The German economy will face quite a few headwinds. Oil prices will continue to weigh on growth, we expect the euro to rise further and on top of that comes a higher sales tax.'' The Economy and Technology Ministry in Berlin is scheduled to release the factory-orders report at noon Sept. 6 and the industrial-production numbers a day later at the same time.

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