German Factory Orders Unexpectedly Rise Most in Two Years

German factory orders unexpectedly rose at the fastest pace in two years, supporting expectations of a recovery in the key manufacturing sector.

Demand increased 7.8% in December, more than predicted by a single economist in a Bloomberg survey. Even without large-scale orders, the gauge would have improved 0.9%, the statistics office said Thursday. The fifth monthly gain defied the median estimate in the Bloomberg poll, where analysts had predicted a 2.2% decline.