German factory orders resume drop in August

  • by Ahmed Mamdouh
  • October 7, 2019, 7:54 AM
  • 76 Views
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German factory orders resumed its drop in August, raising concerns that Europe’s biggest economy may experience a technical recession.

Factory output slumped 0.6 percent in August, following a revised 2.1 percent drop a month earlier, compared to analysts’ forecasts of 0.4 percent fall. Orders were 6.7 percent down from a year ago, resuming its plunge that has started nearly two years ago.   

“Domestic orders decreased by 2.6% and foreign orders increased by 0.9% in August 2019 on the previous month,” Destatis said.

Data released last week showed that Germany’s manufacturing PMI widened its contraction to 41.7 in September, marking the weakest level in 123 months.

The German economy is still suffering the blues of the U.S.-China trade war, global slowdown and Brexit uncertainty.

As of 07:55 GMT, the euro traded slightly lower versus the U.S. dollar at 1.0974, set for its first daily decline in five sessions.

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