German Industrial Orders Plummet
The EU's leading economy may be facing another recession, as evidenced by a significant decline in new manufacturing orders in August. Read Full Article at RT.com.
TroibNews 
**Analysts Warn of Potential Recession for the EU's Largest Economy**
New orders for German-made industrial goods experienced their steepest decline of the year in August, according to provisional data released by the statistics bureau Destatis on Monday.
In August, factory orders in manufacturing dropped by 5.8% compared to the previous month, and there was a decrease of 3.9% year-on-year, defying analyst expectations of a 1.9% decrease.
Destatis explained that the severe month-on-month decline was primarily due to a high base effect from the previous month, during which significant orders were recorded in the category of ‘other vehicle construction.’ When excluding this segment, incoming orders fell by a lesser 3.4%.
August saw significant drops in orders for capital goods and intermediate goods, which fell by 8.6% and 2.2%, respectively, from July. Consumer goods orders also saw a decline of 0.9%, according to Destatis.
The capital goods sector encompasses a variety of industries, including aerospace, defense, construction, and engineering. Intermediate goods are those utilized as inputs in the production of other items.
Examining the origin of new orders, there was a 3.4% increase from outside the Eurozone, while orders from Eurozone countries fell by 10.5%. Domestic orders declined by 10.9%.
Germany's industrial output contracted in July, chiefly due to weak performance in the automotive sector, as noted by Destatis in a separate report on Sunday. Overall production across most manufacturing sectors dropped in July, with the automotive sector seeing an 8.1% decline month-on-month.
Economists surveyed by Reuters indicated a sluggish recovery for Europe’s largest economy, predicting it could face contraction again in the third quarter, thus potentially leading the nation back into recession. Germany's GDP fell by 0.1% in the second quarter.
Following a recession in Germany in 2023, the European Commission anticipates that the country's economy will stagnate this year, attributing the slowdown to ongoing inflation, elevated energy costs, and weak foreign demand.
Mark B Thomas for TROIB News
New orders for German-made industrial goods experienced their steepest decline of the year in August, according to provisional data released by the statistics bureau Destatis on Monday.
In August, factory orders in manufacturing dropped by 5.8% compared to the previous month, and there was a decrease of 3.9% year-on-year, defying analyst expectations of a 1.9% decrease.
Destatis explained that the severe month-on-month decline was primarily due to a high base effect from the previous month, during which significant orders were recorded in the category of ‘other vehicle construction.’ When excluding this segment, incoming orders fell by a lesser 3.4%.
August saw significant drops in orders for capital goods and intermediate goods, which fell by 8.6% and 2.2%, respectively, from July. Consumer goods orders also saw a decline of 0.9%, according to Destatis.
The capital goods sector encompasses a variety of industries, including aerospace, defense, construction, and engineering. Intermediate goods are those utilized as inputs in the production of other items.
Examining the origin of new orders, there was a 3.4% increase from outside the Eurozone, while orders from Eurozone countries fell by 10.5%. Domestic orders declined by 10.9%.
Germany's industrial output contracted in July, chiefly due to weak performance in the automotive sector, as noted by Destatis in a separate report on Sunday. Overall production across most manufacturing sectors dropped in July, with the automotive sector seeing an 8.1% decline month-on-month.
Economists surveyed by Reuters indicated a sluggish recovery for Europe’s largest economy, predicting it could face contraction again in the third quarter, thus potentially leading the nation back into recession. Germany's GDP fell by 0.1% in the second quarter.
Following a recession in Germany in 2023, the European Commission anticipates that the country's economy will stagnate this year, attributing the slowdown to ongoing inflation, elevated energy costs, and weak foreign demand.
Mark B Thomas for TROIB News
