CGerman new orders dropped unexpectedly sharp by 4.3% MoM in September, from a 1.4% drop in August. It was the third consecutive monthly drop. On the year, new orders are only up by 2.4%. The drop was driven by both domestic and foreign demand, with demand from other Eurozone countries falling by a shocking 12.1% MoM. Looking at the different sectors, only demand for German consumer goods increased.
Today’s drop in German new orders completes a week of yet another rollercoaster ride in the Eurozone. The financial turmoil and the economic slowdown in other Eurozone countries have obviously spoiled the appetite for goods “made in Germany”. For the time being, the safety net for the German industry of high backlogs and low inventories is still holding but today’s numbers make it thinner. The German industry has finally caught the crisis virus.