Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

German Orders Resume Slide, Defying Hope for Factory Rebound

Published 05/12/2019, 06:28 pm
Updated 05/12/2019, 07:24 pm
German Orders Resume Slide, Defying Hope for Factory Rebound

German Orders Resume Slide, Defying Hope for Factory Rebound

(Bloomberg) -- German factory orders unexpectedly fell, suggesting Europe’s largest economy is still struggling to overcome a manufacturing slump and fend off recession.

Demand dropped 0.4% in October, defying estimates for a 0.4% gain. It was driven by weak demand for investment goods within Germany and outside the euro area. Bulk orders from within the currency bloc prevented a sharper decline.

The reading serves as a reminder that German factories have a long way to go to overcome a slump that’s already lasted more than a year. Industry output continued to contract in November, and business confidence remained muted.

“Manufacturing momentum continues to be depressed,” the Economy Ministry said in a statement. “The outlook for manufacturing in the fourth quarter is still subdued.”

Orders were down 5.5% from a year earlier in October, highlighting the damage global trade conflicts have inflicted on German industry.

A gauge for factories’ order stocks in November hinted at a continued contraction in the sector, according to a separate report from Germany’s Ifo institute. Carmakers, chemicals and metal-goods producers reported deteriorating conditions.

“The great order book deflation in German industry continues,” said Carsten Brzeski, chief economist at ING Germany. This “does not bode well for industrial production in coming months. The trade conflict, global uncertainty and sector-specific shocks are clearly weighing on German industry.”

The Bundesbank has said Germany’s economy will probably stagnate in the fourth quarter, and there’s little sign of a rebound any time soon. Growth is set to remain below 1% next year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.