French industrial orders build on May acceleration.

As the Euro area growth seemed to sputter in Q2, various indicators weakened as well. And GDP in the Euro area was below expectations in Q2. Certainly the VAT hike in Germany, the Euro area's largest economy was a factor. But since then there have been few signs that growth has been put back on track. Against this background, strong French orders is a welcome sign. May had showed a strong bump up in orders, but the 5.1% simple monthly gain in June makes the surge in orders much more certain. With concerns about subprime lending risks and losses and other financial strife, it is key to see the economy on stronger footing. This report is the first sign we have that Europe was tipped into this period on very strong growth. It will be interesting to see what numbers will turn out for July as well. We have to wait for August figures to see true post lending crisis impacts begin to emerge.