Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UPDATE 1-German orders plunge, deepening recession gloom

Published 01/08/2009, 06:52 AM
Updated 01/08/2009, 06:56 AM
ATTU
-

(Adds economist comment, background)

BERLIN, Jan 8 (Reuters) - German manufacturing orders dropped by a much bigger-than-expected 6.0 percent in November, hit by collapsing demand at home and abroad and deepening the gloom facing Europe's largest economy in 2009.

In the preliminary data released by the Economy Ministry on Thursday, the orders figure for October was also revised down to show a decline of 6.3 percent on the month compared with 6.1 percent previously reported.

"Industry is in freefall," said Goldman Sachs economist Dirk Schumacher.

The seasonally adjusted drop in the November figure compared with the consensus forecast in a Reuters poll for a fall of 1.1 percent .

Demand declined on a broad front both domestically and from abroad, the ministry said. Domestic orders fell by 7.6 percent, with foreign orders down 4.4 percent [ID:nBAE001533]

"The nightmare continues," said Fabienne Riefer at Postbank.

"We are seeing miserable data across the board -- there is no ray of hope. The economic horror scenario for the winter months is taking shape. Gross domestic product in the fourth quarter will have contracted significantly," she added.

Earlier on Thursday, Statistics Office figures showed German exports posted a record fall in November as demand for cars and others mainstays of the manufacturing economy plummeted.

Germany fell into recession in the third quarter of last year and leading economic institutes have forecast the economy could contract by 2 percent or more in 2009 -- which would be easily the worst annual performance in the post-war era.

In a sign of how German manufacturers are suffering, industrial conglomerate MAN said last month it expected output at its core truck business to drop 30 percent this year. (Reporting by Paul Carrel, Dave Graham and Madeline Chambers; Editing by Andy Bruce)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.