Germany: Sharp fall in November industrial orders – ING
According to Carsten Brzeski, chief economist at ING, drought in German order books and the manufacturing slump is getting worse as new industrial orders dropped by 1.3% month-on-month in November, from 0.2% in October (revised upwards from -0.4% MoM).
Key Quotes
“On the year, new orders were down by a dire 6.5%. According to the statistical agency, the November fall is mainly due to a sharp drop in bulk orders. Excluding bulk orders, November orders were up by 1% MoM. While the sharp October decline in domestic orders was partly reversed (+1.6% MoM, from -3.2%), foreign orders fell by 3.1%.”
“The great order book deflation in German industry continues. In fact, it looks as if 2019 will 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%.”
“Ahead of the Great Recession, order books shrank by 2.9% on average every month in 2008.”
“All in all, there are still no signs at all of a bottoming out for German industry. Instead, the free fall continues. In fact, there is simply one word to describe the current state of the German industry: ‘dire’.”
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.
