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German factory orders grew in November more than economists has expected mainly due to the demands coming from inside the country.

Yahoo reported that the Economy Ministry in Berlin reported Thursday that orders rose 1.5 percent compared to October, which also saw a 1.7 percent gain. Domestic orders increased by 2.6 percent, while orders that came from outside the 19-country Eurozone also went up 1.4 percent. However, orders that came from inside Europe dropped by 0.5 percent.

London South East wrote that German intermediate goods manufacturer increased by 4.8 percent, while orders for capital goods went down by 0.1 percent. Meanwhile, there was a decrease in new orders for consumer goods by 2.4 percent.

According to Bloomberg News orders went up 2.1 percent compared to the previous year. Unemployment in the country is at a very low level and wages are increasing. This drives growth to the country's economy since it increases private consumption. Exporters are taking advantage of the weaker euro as they shift from countries with suffering from slower economic growth like China to rebounding economies like the US.

"German companies aren't allowing the various crises to spoil their optimism," said NordLB chief economist Torsten Windels. "Rising investments as well as an increase in private consumption will drive the German economy in 2016."

In another note, the Federal Statistics Office announced that the German retail sale went up by 0.2 percent in November compared to the previous month. However, economists projected a rise of 0.5 percent.

Orders for basic-goods is up by 4.8 percent November due to strong domestic demand. Total orders from inside the country rose 2.6 percent. However Euro-area orders dropped 0.5 percent after a 2.6 percent increase in October.

The BGA trade group projects that Germany's exports increased by as much as 6 percent last year, while imports increased 4 percent. The group expects both these numbers to reach record high levels in 2016.