German industrial orders down as eurozone demand drops sharply
November 6, 2012 by The Associated Press
German industrial orders fell by more than expected in September as demand from the other 16 members of the group that uses the euro dropped, the Economy Ministry said Tuesday.
Industrial orders fell 3.3 per cent in September over the previous month, pulled down by an overall 4.5 per cent drop in foreign demand, including a 9.6 per cent drop among the other eurozone countries. Domestic orders fell 1.8 per cent.
Economists had been predicting a 0.4 per cent drop in orders and the decline portends possible tough times ahead for Europe’s largest economy.
“Weak economic environment within the eurozone, but also globally, is now having a more significant impact on demand for German products than in the first half of the year,” the ministry said.
Germany has avoided recession during Europe’s three-year debt crisis but, as other eurozone countries falter, its economy is beginning to slow. The government last month lowered its 2013 growth forecast to 1 per cent from 1.6 per cent. It expects 0.8 per cent growth this year.
UniCredit economist Andreas Rees said despite the data the German economy has been doing “surprisingly well” compared to others in Europe, though the new figures suggest likely stagnation in the second half of the year.
“The decline in September was significant and wide-spread, thereby heralding a weak year-end for German companies,” he said.
The ministry revised August’s figure upward to a drop of 0.8 per cent from the previously reported 1.3 per cent decline.