Germany: Industrial orders drop in October – ING
Carsten Brzeski, chief economist at ING, notes that German new industrial orders dropped by 0.4% month-on-month in October, from 1.5% in September.
Key Quotes
“On the year, new orders were down by 5.5%. Domestic orders dropped by a whopping 3.2%, while foreign orders increased by 1.5%, driven by a sharp bulk-order-driven 11% increase in orders from Eurozone countries.”
“The great order book deflation in German industry continues. In fact, it looks as if 2019 wil be the second year in a row in which new orders have fallen. In 2018, orders dropped by 0.4% on average. Currently, 2019 is on track to record a monthly average drop of some 0.6%.”
“All of this means that the discrepancy between thin order books and high inventories is now bigger than at the start of the mini-recession in 2012 and does not bode well for industrial production in coming months.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
