German factory orders have expanded for the second month in a row, signaling that Europe's biggest economy is accelerating through its industrial sector. Factory orders are economic indicators that report the "dollar level of new factory orders for both durable and non-durable goods." As of mid-November, the euro-area economy has preserved its expansionary pace in the third quarter, and looks to close the year with the best annual performance of a decade. Buoyant exports and investments have enabled Germany to make its progress.

The orders rose 1% in March 2017 after a February expansion. These readings must be compared to the "median estimate for a 0.7% gain" according to Bloomberg surveys. Compared to 2016, orders have risen 2.4% in this past year.

According to the Bundesbank, the recent economic momentum is likely due to strong consumer spending and an increasingly positive manufacturing outlook. High levels of business confidence and statistics demonstrating growth acceleration have buoyed the momentum, resulting in "vibrant" manufacturing orders due to "improved business climate indicators." Furthermore, demand from the 19-nation euro area bolstered orders, and "investment goods" rose by 7% in the region, while consumer goods rose to 20.5%.

However, while Germany's economic strength is beneficial for the euro area and global outlook, its pace of growth could potentially cause the nation to strain against its maximum capacity, an outcome that may result in inflation. The current question is how fast can the economy grow before it runs into trouble?

As of now, however, the euro area has successfully avoided economic crisis. Policy makers have successfully driven recovery with "interest-rate cuts and stimulus programs." As it stands, the region is the strongest it has been in roughly two decades, regarding robustness and balance, and is strong enough that most believe Germany can weather ongoing political turbulence.