(ANSA-AP) - BERLIN, SEPTEMBER - German factory orders, a
leading indicator of the health of Europe's biggest economy,
dropped sharply in July, erasing the previous month's gains. The
Federal Statistical Office reported Thursday that industrial
orders dropped 2.7% in July from June when adjusted for seasonal
and calendar factors, wiping out a 2.7% June increase. Domestic
orders dropped 0.5% while foreign orders fell 4.2% compared with
June.
The Economy Ministry says "ongoing growing international
trade conflicts and restrained expectations from manufacturing
businesses indicate no fundamental improvement in industrial
growth in the coming months."
Germany's economy contracted by 0.1% in the April-June
period. It's expected to decline again this quarter, placing it
in a technical recession. ING economist Carsten Brzeski says the
drop in orders "doesn't bode well at all" for the third quarter.
(ANSA-AP).
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