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Rolling coverage of the latest economic and financial news, as Germany’s manufacturers struggle again
German factory orders slumped 1.6% in December
Order books were 7% lower than 12 months ago
An employee of German car manufacturer Mercedes Benz installs wheel at a A-class model at the production line at the Daimler factory in Rastatt, Germany. Photograph: Kai Pfaffenbach/Reuters Graeme Wearden
Wed 6 Feb 2019 07.56 GMT First published on Wed 6 Feb 2019 07.47 GMT
Share on Facebook Share on Twitter Share via Email Key events Show 7.56am GMT 07:56 Germany’s economy ministry: Industry remains weak 7.43am GMT 07:43 German factory orders slide again Live feed Show 7.56am GMT 07:56
Germany’s economy ministry: Industry remains weak Germany’s economy ministry doesn’t see much cheer in today’s factory orders, saying:
“The decline in orders in December suggests that the weak phase in industry will continue for now.
The latest sentiment indicators also point to muted momentum at the start of the year.”
Facebook Twitter 7.54am GMT 07:54
The decline in German factory orders was mainly due to weaker demand for abroad.
Orders from outside the eurozone plunged by 5.5% month-on-month in December, while domestic orders dipped by 0.6%.
Facebook Twitter 7.43am GMT 07:43
German factory orders slide again
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Concerns over the health of the German economy are mounting this morning, after Europe’s largest economy suffered another big fall in manufacturing orders.
Germany factory orders plunged by 1.6% in December, new figures released this morning show, due to weak demand from overseas.
That’s much worse than the 0.3% rise which economists had expected, and follows a 0.2% decline in November.
German factory orders Photograph: Destatis
On an annual basis, orders were a chunky 7% lower than in December 2017. That looks to be the biggest drop since 2012.
Christophe Barraud? (@C_Barraud) ?? #Germany Dec #Manufacturing Orders:
*M/M: -1.6% v 0.3%e (largest ⬇ since June 2018)
*Y/Y: -7.0% v -6.7%e (largest ⬇ since June 2012) pic.twitter.com/PRZVSnoPXS
February 6, 2019 Such a weak result showing that Germany’s industrial base is struggling in the face of trade tensions, slowing global growth, and Brexit anxiety.
Germany’s car industry has also had a bad few months. They’ve struggled to get models tested and onto the road following the introduction of new, tougher, pollution rules.
We already know that German GDP shrank by 0.2% in July to September; some economists fear its economy may have kept shrinking, putting the country into recession.
Holger Zschaepitz (@Schuldensuehner) The Recession word is getting louder. #Germany ‘s Industrial Order dropped 1.6% in Dec m/m vs a gain of +0.3% expected. Capital goods orders fall 2.5% m/m. pic.twitter.com/J4cA5gmyNQ
February 6, 2019 More reaction to follow….
Also coming up today European stock markets are tipped to open flat, after a strong rally on Tuesday that saw the FTSE 100 jump by 2% to a new three-month high.
Britain’s Competitions and Markets Authority is enforcing a clampdown on some of the biggest online hotel booking sites – calling it “a victory for UK holidaymakers”. More on that shortly.
Struggling outsourcing group Interserve has announced a whopping debt-for-equity swap rescue deal.
Jim Pickard (@PickardJE) Interserve has announced an epic debt-for-equity swap which saves the company but massively dilutes existing shareholders:
“the shares issued through the Placing and Open Offer will account for 97.5% of the ordinary share capital of Interserve” https://t.co/kxdbJbPzSX
February 6, 2019 Cabinet Office voices concern over Interserve rescue deal Read more
Plus we should get new US trade figures, and the weekly oil inventory stats, which should give another insight into the state of America’s economy
The agenda 1.30pm GMT: US trade figure for November
3.30pm GMT: US weekly oil inventory figures
Updated at 7.46am GMT
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