Yesterday, the German economics ministry reported a growth in orders for German industry of a surprising 4.4 % in May 2009 over April 2009. Steel industry companies and medium-sized entities are also in a good mood at the moment. The job market and state budgets, however, remain problematic.

While orders from inside Germany grew by 3.9 % compared to April, foreign orders grew by 5.2 %, with those from outside the European Union growing the strongest at 8.2 %. In April, orders had grown at a mere 0.1 % compared to the previous month and the expectation for May was only 0.8 %. Steel production is currently showing the strongest growth (15.7 %) followed by the auto industry (9.8 %). Compared to 2008, however, orders are still around one-third lower on average.

Medium-sized entities, the backbone of the German economy, are also reporting an improved business climate, although, as the KfW and the Ifo Institute have pointed out, this is mainly due to good expectations for the upcoming six months, which is one factor questioned in the business climate survey.