Bad news for German industry as orders fall
A marked decline in orders does nothing to alter the pessimistic economic outlook as Germany feels the pinchBerlin -- German factory orders fell sharply in June, the Ministry of Economics and Technology said Friday, with a big slump in foreign demand resulting in a second-quarter drop of 4.1 per cent
After slumping by a revised 1.4 per cent in May, German industrial orders dropped by a price-and-seasonally adjusted 2.9 per cent in June adding to expectations that growth in Europe's biggest economy is rapidly losing momentum.
Economists had predicted the data, which is considered to be a key if volatile economic indicator, to clock up a modest 0.3 per cent gain in June. The ministry had previously reported a 0.9 per cent fall in May.
"The outlook for industrial production has worsened," the economics ministry said releasing the latest data.
While German companies' domestic orders slipped by 0.6 per cent in June, foreign orders contracted by 5.1 per cent.
This in particular followed a 7.7-per-cent drop in orders from Germany's partners in the 15-member eurozone.
Orders from nations outside the eurozone fell back by 3.1 per cent adding to signs that the global economy is contracting.