In September, work orders for the German industry have declined for the third month in a row. This is the longest stagnation in orders since 2011th
Originally appeared at Deutsche-wirtschafts-nachrichten, translated by Karin exclusively for SouthFront
German industry suffers from a loss in commissions: In September, for the third month in a row, orders fell surprisingly due to lower demand at home and abroad – this is the longest lean spell in four years. They fell by 1.7 percent compared to the previous month, as the Federal Ministry of Economic Affairs announced on Thursday in Berlin. Economists polled by Reuters had expected a gain of 1.0 percent after the orders had fallen in August by 1.8 percent and by 2.2 percent in July. Nevertheless the ministry sees no reason to panic. “The business climate in the industry continues to be good.”
Experts believe that the German economy is in a slump because of the stagnation of commissions. “The contracts currently show their ugly face,” said the chief economist of Bankhaus Lampe, Alexander Krüger. “The weakness of the world economy crises reflects”. Which can result in fewer investments of companies. “The sharp decline hurts,” said economist Thomas Gitzel by VP Bank. “The German industry will probably have to lower their expectations in the coming months.”
Foreign business shrank in September by 2.4 percent. The demand from the Euro-Area countries fell by 6.7 percent, while the rest of the world increased by 0.7 percent. “Business with the emerging economies is running slow”, Gitzel said. “The turmoil in China continues to show its negative effects.” Domestic orders declined by 0.6 percent.
The orders for capital goods such as machinery and equipment fell by 2.9 percent; consumer goods fell by 0.4 percent. However the demand for inputs such as chemicals grew by 0.4 percent.