German factory orders rose 3.5 percent in July from the previous month for the fifth consecutive month, surpassing estimates of a 2.0 percent rise. German factories benefitted from a restocking of inventories as the government’s 85 billion-euro stimulus package started to kick in, helping domestic demand surge 10.3 percent in July. Domestic and global demands started picking up, as global governments continue to take unprecedented steps to recover the ailing economies. However these packages are of temporary relief to the system only in the second half of the year, as it will lose steam ahead early next year. Moreover, Axel Weber of Bundesbank questions if the current economic recovery is sustainable in the future quarters, as Bundesbank predicts unemployment continues to rise to 10.5 percent in 2010, further curbing consumer spending.
