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Factory Orders in Germany Drop for Third Month
Factory orders in Germany, which shrank 2.2% in July and 1.8% in August, contracted by a seasonally adjusted 1.7% in September, according to the country’s Federal Statistics Office.
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Factory orders in Germany, which shrank 2.2% in July and 1.8% in August, contracted by a seasonally adjusted 1.7% in September, according to the country’s Federal Statistics Office.
The decline came as orders from countries within the eurozone fell nearly 7%. Orders from other countries grew less than 1%, putting a dent in Germany’s export-based economy. Total orders were 3% lower than in the previous quarter.
Economists say the shrinkage shows the impact of weakened economies in Brazil, China and Russia. They predict continued “sluggish” performance for Europe’s largest economy well into 2016.
The European Commission concurs. Earlier today it forecast that Germany’s real GDP will expand 1.7% in 2015 and 1.9% in both 2016 and 2017. The EC predicts only “timid” real growth in gross domestic product for the entire eurozone of 1.6% this year, 1.8% in 2016 and 1.9% in 2017.
The commission also expects inflation in the eurozone will rise from a microscopic 0.1% this year to 1% in 2016 before advancing to 1.6%—still below the 2% target for healthy economic expansion—in 2017.
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