German Manufacturing Orders Plummet
First Published Tuesday, 6th November 2012 11:35 am - © 2012 Dow Jones
FRANKFURT--German manufacturing orders plunged in September as orders from within the euro zone declined by almost 10% from August, undermining growth expectations for Germany's economy.
Manufacturing orders dropped by 3.3% in real terms in September from August--well below economists' expectations for a 0.5% decrease--as euro-zone orders were down 9.6%, data from the Economics Ministry showed Tuesday. The figures are adjusted for seasonal and calendar effects.
Slack global activity is undermining demand for manufactured goods to a greater extent than in the first half of the year, the ministry said, adding, "Industrial production could weaken further in the coming months."
Manufacturing orders were down 4.7% in September from a year earlier, in calendar-adjusted terms, following a similar drop in August, when orders fell 4.6% on the year. Big-ticket orders were again below average, the ministry said.
Germany's manufacturers struggled to attract customers at home and abroad, with the weakness spread across all sectors, including producers of capital goods and consumer goods, the data showed. Domestic orders were down by 1.8% in real terms in September from August, while foreign orders, including from outside the euro zone, were down 4.5%.
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