Germany: Manufacturing still in negative territory – ABN AMRO

Aline Schuiling, senior economist at ABN AMRO, suggests that even though the Germany’s factory orders and industrial production data improved in March, but the details of the two reports, as well as sentiment indicators signal that the tide in the sector has not yet turned and weakness continues.

Key Quotes

“Factory orders increased by 0.6% mom in March, which is very modest considering that it followed upon two consecutive monthly drops of 6% in total. As a result, during Q1 as a whole, orders dropped by more than 4% qoq.”

“Turning to industrial production, which rose by 0.5% mom in March after 0.4% in February, the details also point at ongoing weakness in manufacturing.”

“Finally, the Ifo business climate in manufacturing dropped again markedly in April and the manufacturing PMI remained well below the 50 boom-bust mark, indicating ongoing weakness in the sector.”

“All in all, we think Germany’s manufacturing sector will remain sluggish in the coming months. Indeed, output is likely to decline significantly going forward as it catches up with the weakness in orders and in business surveys. Later in the year, it should pick up on the back of a modest improvement in global trade.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD extends gains to 1.1200 on sliding US yields, weak data

EUR/USD is trading close to 1.1200, in the wake of the European session as US yields continue falling. The European Parliament elections are in play. US durable goods fell short of expectations with -2.1%. 


GBP/USD off the highs as May announces stepping down on June 7th

GBP/USD is trading below 1.2700 after a quick rise to the upside as UK PM Theresa May announced she will step down on June 7th with Boris Johnson set to take over.


USD/JPY extends slide and looks for a test of May’s low

The USD/JPY pair dropped further ahead of the London fix on the back of a decline of the US Dollar across the board and a pullback in equity prices. 


Gold: Bullish flag pattern spotted on 1-hourly chart

The lower end of the descending trend-channel coincides with 200-hour EMA support and should act as a key pivotal point for intraday traders. 

Gold News

The market may surprise on the upside in the next few hours with BTC/USD topping $8,250

We reach the end of a week can be characterized as a week of transition. After the strongly bullish days of the beginning of the month, cryptos have reached critical levels of resistance...

Read more