German Factory Orders Fall in August

German factory orders fell in August by their largest amount since the height of the global financial crisis in 2009, according to official figures.

The economy ministry figures show that contracts fell 5.7% month-on-month, pointing to further weakness in Europe’s largest economy.

The biggest drop was for orders from outside the eurozone, which fell 9.9%.

Germany’s economy had a strong start to the year, but shrank by 0.2% in the second quarter.

Economists have warned that the economy could contract again in the third quarter, coming at the time when the eurozone as a whole is weakening.

Tensions over Ukraine have cast a cloud over trading between Germany and Russia. But Carsten Brzeski, senior economist at ING, said: “It’s not only a [Russian President Vladimir] Putin fear factor – Germany is also suffering from the weakness of its eurozone peers.”

The economies of France and Italy continue to struggle.

The weak data comes after a survey last week showed Germany’s manufacturing activity shrinking for the first time in 15 months in September, as new orders dried up.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza