German factory orders increased in May, albeit less than forecast, as Europe’s largest economy is seen expanding at a robust pace. Orders, adjusted for seasonal swings and inflation, rose 1 percent after falling a revised 2.2 percent in April, data from the Economy Ministry in Berlin showed on Thursday. The typically volatile reading compares with a median estimate for a 1.9 percent increase in a Bloomberg survey. Orders were up 3.7 percent from a year earlier, when adjusted for working days. Germany has driven economic growth in the 19-nation euro region and the Bundesbank predicts that “lively” manufacturing demand from within the country and abroad will contribute to strong growth. The Frankfurt-based central bank has upgraded its outlook through 2019, also pointing to declining unemployment bolstering spending. “The solid development in orders, as well as the excellent business climate, signal further moderate upward momentum in manufacturing,” the Economy Ministry said in a statement. In May, orders were driven by export demand for investment goods, which surged 6 percent from the previous month. Orders for basic and consumer goods declined. The Economy Ministry will publish industrial-production data on Friday. Economists predict output rose 0.2 percent in May after increasing 0.8 percent the previous month.