German Factory Orders Collapse

It’s the worst single-month drop since the beginning of 2009.

 

German factory orders fell 5.7% between July and August, worse than the 2.5% decline expected by economists. Orders are down 1.3% from August last year.

 

Export orders were worst hit, and that matches the business surveys that suggest there’s been a knock-on effect from the war in Ukraine.

 

But domestic orders also dropped 2% from July. That’s following the latest manufacturing business survey, which indicated that the sector is now shrinking.

 

Claus Vistesen at Pantheon Macroeconomics said: “In one line: Grim, as manufacturing slowdown deepens.”

 

The chart below, provided in the report, shows how factory orders and industrial production typically track each other:

 

screen shot 2014-10-06 at 8.23.02 am.png

 

Source: Business Insider / Oct. 6, 2014

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