Orders slump as Germany’s manufacturers bear the brunt of escalating trade spat
The economy ministry says trade policy uncertainty played a role in the fall in orders as demand from non-eurozone countries led the slide
Frankfurt — German manufacturers took a hit in June as a slide in overseas demand knocked factory orders amid escalating trade tension. Orders fell 4% from the previous month — eight times as much as forecast in a Bloomberg survey of economists — and the 0.8% drop from a year ago was the first annual decline since July 2016. The economy ministry acknowledged that "uncertainty from trade policy played a role" as demand from non-eurozone countries led the slide. While the figures predate July’s agreement by the US and EU to hold off from further tariffs as long as negotiations are ongoing, they highlight the potential for trade spats to dent Europe’s largest economy. German business sentiment has been eroded since the turn of the year, with companies expressing concern over the outlook. BMW joined carmakers from around the world last week in warning that trade tensions could drag down profits in the coming months. The company is also worried about escalating US-China trade threats as ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.