In Germany continues to fall in new industrial orders

the Key economy of the Eurozone is experiencing the longest period of decline in new industrial orders since the beginning of the XXI century.

Federal statistical office of Germany reported another drop in new industrial orders in Germany.

Many experts predicted counts recover after declining 0.8% in November, but instead had recorded a more serious decline. In December, 2019 the index decreased by 2,1% on a monthly basis. Compared to December 2018, the volume of industrial orders in Germany fell by 8.7%.

the Main factor that caused the decline in the latter months of 2019 has been a sharp decline in demand for German products from the Eurozone. The inner volume of new industrial orders in December rose 1.4%, but foreign orders fell by 4.5% amid the collapse in new orders for industrial goods from Germany Eurozone countries by 13.9% compared to the previous month.

the Turnover in the industrial sector of Germany, according to German statistical Agency, in December 2019 fell by 1.3% compared with November.

Chief economist at ING Carsten Brzeski commented on the released figures, saying that in Germany “continues the industrial horror show”.

the Expert noted that in Germany, the marked decline in new industrial orders in 8 of the last 12 months. As a whole, 2019 for the German industry in terms of reducing the orders was not only the worst since 2008, but, in fact, the worst since 2002, as in 2018-2019, in Germany for the first time since the beginning of the XXI century there is a reduction in new orders for two years in a row.

Brzeski warned that short-term prospects for German industry remain “heavy”, pointing out potential negative consequences for German exporters, due to the slowdown of the Chinese economy in view of the difficult situation with coronavirus.