Updated
Updated · Reuters · Jun 8
German Industrial Orders Drop 3.8% in April as Euro Zone Demand Slumps 11.1%
Updated
Updated · Reuters · Jun 8

German Industrial Orders Drop 3.8% in April as Euro Zone Demand Slumps 11.1%

3 articles · Updated · Reuters · Jun 8

Summary

  • German industrial orders fell 3.8% in April, a steeper drop than the 2% decline economists expected after March’s surge.
  • March orders were revised to a 4.5% gain, and economists said companies had pulled forward purchases amid fears the Iran war would lift prices, leaving weaker demand in April.
  • Foreign orders drove the decline, dropping 4.2% overall as euro zone demand sank 11.1%, while domestic orders fell 2.9%; excluding large orders, bookings still dropped 3.8%.
  • Over the broader trend, orders from February through April were 3.1% lower than in the previous three months, and Commerzbank said Middle East uncertainty could keep dampening demand and push Germany’s economy into second-quarter contraction.

Insights

Is the war masking deeper, pre-existing weaknesses within Germany's struggling export-driven economy?
Can the EU's new 'Made in EU' plan rescue German industry from the deepening Middle East crisis?
With the Strait of Hormuz shut, is a global recession now the unavoidable price of the Iran war?