German factory orders decline, economy 'drifting towards recession'

With German industry already incredibly anxious about the prospect of a No Deal Brexit, factory orders have tumbled and there are warnings of a potential recession as has already just occurred in Italy.

German factory orders went down by 1.6% in December, a horrific result compared to the expected rise of 0.3%

That means that compared to one year earlier, factory orders have declined by 7% compared to December 2017.

Deutsche Bank responded by warning: “The start of the German economy into 2019 has been a major disappointment so far.

“The development of several key cyclical indicators is telling us that the German economy is drifting towards recession right now.”

This comes after the German Economy Ministry slashed the projected 2019 growth forecast from 1.8% to 1% and investor morale was shown to be at its lowest since 2012.

As the Managing Director of Sentix, Manfred Huebner, puts it: “The German economy, which has been the economic locomotive of the Eurozone in recent years, is losing more steam.”

Is Angela Merkel really going to infuriate German industry further by allowing the UK to leave the EU without a deal?

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