Official data from the economy ministry showed orders grew by 2.4 percent on the month, compared to the Reuters forecast for an increase of 0.6 percent, with demand for investment goods leading the charge.
The figures bolstered market expectations of rises in euro zone interest rates, pushing the euro to a fresh 14-month high of 1.4317 against the dollar.
“These are excellent numbers and orders are very robust,” said Stefan Schilbe from HSBC Trinkaus.
“We are experiencing a wide-ranging upswing, which is being fed both domestically and overseas.”
Germany has recovered faster than expected from a recession in 2009 that was its deepest since World War Two, and recent indicators show it is on a steady path of growth, despite some hiccups in areas like retail sales.
Unemployment fell sharply for a second straight month in March to its lowest level since figures for a unified Germany were first published two decades ago, in a sign demand for labor remains robust.
Earlier, a source said the country’s leading economic research institutes that advise Berlin are set to upgrade their forecasts for 2011 growth.
The institutes now expect growth of over 2.5 percent.
Economy Minister Rainer Bruederle has also been upbeat of late, saying on Tuesday he wouldn’t be surprised if growth tops the the current official government forecast of 2.3 percent.
