ZCZC
BCN-32
GERMANY-ECONOMY-INDUSTRY-INDICATOR
German industrial orders tumble further in February
FRANKFURT AM MAIN, April 4, 2019 (BSS/AFP) – Industrial orders in Europe’s
powerhouse Germany saw a sharp fall in February, official data showed
Thursday, the second month in a row as signs of slowing growth multiply in
the eurozone.
New orders fell 4.2 percent month-on-month, federal statistics authority
Destatis said in preliminary figures adjusted for price, seasonal and
calendar effects.
The reading disappointed expectations for a 0.5-percent rebound from
analysts surveyed by Factset.
“Lower orders could be observed in most economic sectors, from at home as
well as abroad,” the economy ministry in Berlin said in a statement.
Looking to different areas of the economy, capital goods makers were the
worst hit in February with a 6.0-percent drop in orders — including a 9.2-
percent fall in contracts from non-eurozone countries.
The picture of a strong fall in demand from nations outside the 19-country
single currency bloc was repeated at consumer goods firms, which saw orders
fall 3.5 percent overall.
Meanwhile makers of producer goods were the most resilient with a drop of
only 0.9 percent.
Industry is currently “almost in freefall”, economist Jens-Oliver Niklasch
of LBBW bank commented.
“Much of this can likely be traced back to elevated uncertainty related to
Brexit” given the plunge in non-eurozone orders, he argued.
With high stocks of existing orders, “for now there don’t seem to be any
effects on the labour market,” Niklasch noted.
“Things can’t stay that way forever though. Let’s hope that London gives
the green light for a deal with the EU soon.”
BSS/AFP/SR/1915 HRS