German industrial orders fall again, pointing to continued economic struggles
German economy
Industrial orders in Germany dropped surprisingly in May for the fifth month in a row, raising questions about the outlook of the manufacturing sector in Europe's largest economy, according to the Federal Statistics Office.
Analysts had forecast a rise in orders, but instead, they fell by 1.6 per cent compared to the previous month.
This drop was validated by June PMI data for manufacturing, indicating that the sector continued to be in slow motion.
According to the test of the latest business climate index by Ifo Institute, the manufacturers were doubtful about the months ahead.
The record of the German Economy Ministry attributes the fall in orders to dull global trade and the absence of noticeable improvements in the demand for industrial goods.
They believe that a recovery in new orders is likely to hinge on the upturn in world trade situations and a gradual upturn in demand.
The specialists also included in this gloomy list the weakness of global industrial development, that reached the two leaders, the United States and China.
All these pains of the global economy would supposedly reduce constantly the German one with the absence of a short-term positive outlook.
(With inputs from Reuters)