Bad Start for Germany
World Economy

Bad Start for Germany

German industrial orders unexpectedly dropped in February, partly because companies got fewer major contracts, after bookings already plunged in January.
Today’s figures suggest that manufacturers had a subdued start to 2015 in Europe’s largest economy, RTE News reported.
Orders for goods made in Germany – a highly volatile indicator – decreased by 0.9% on the month, data from the Economy Ministry showed. A Reuters poll had forecast a 1.5% rise.
It was the first time since last summer that orders have slipped for two months in a row.
“Today’s drop in new orders shows that after a series of almost euphoric news and indicators from Germany and euro zone, some caution is clearly justified,” analysts said. But they added that the weak euro should help German industrial firms.
The decline in new contracts was driven by a drop in demand for capital and intermediate goods. Bookings for consumer goods, which rose by 2.9% on strong demand from abroad, were the only bright spot.
A breakdown of the data showed domestic demand was stagnant, while demand from abroad dropped by 1.6%.
The Economy Ministry said the basic trend in industry was likely to remain “pointed moderately upwards” though.
Other evidence has painted a rosier picture of the sector, with a purchasing manager’s survey last week showing German manufacturing expanded at the fastest pace in almost a year in March as output gained momentum.
Overall, Germany looks set for a decent performance in the first quarter, with business and investor morale improving, unemployment falling and the private sector gaining traction.
Consumer sentiment is at a 13 and a half high as shoppers benefit from rising wages and cheap oil.
The orders data for January was revised up to a fall of 2.6% from an originally reported 3.9% plunge.


Short URL : http://goo.gl/rSQbqd

You can also read ...

Thai CB Retains Key Rate
Thailand’s central bank on Wednesday left its key interest...
China and India continue to remain the most promising investment destinations in 2017.
Developing Asia is expected to witness a 15% increase in...
Brazil Raises Deficit Ceiling
Brazil is raising its deficit ceiling for this year and 2018...
Elon Musk, Kevin Plank, Bob Iger, Richard Trumka, Kenneth Carleton Frazier
The honeymoon is definitely over. When US President Donald...
Riksbank is under pressure to tighten its ultra-loose monetary policy.
Underlying inflation topped the Swedish central bank’s target...
Crude oil accounts for 96% of exports and around half of state revenue.
Venezuela might look bad right now amid protests, scarce food...
At 310% GDP, China’s banking sector is above the advanced economy average and nearly three times  the emerging market average.
China's economy is looking good enough that the International...
US Household Debt at $12.8 Trillion
US household debt reached a new record in the second quarter,...