German Of The Day: Abschwung

That means downturn.

Downturn

German industry hit by biggest downturn since 2009 – Output falls 5.3% in year to October, weighing on eurozone growth outlook.

Germany’s sprawling industrial sector is suffering its steepest downturn for a decade, underlining how the engine of the eurozone’s biggest economy is sputtering.

In der deutschen Industrie geht der Abschwung mit einem schwachen Start ins vierte Quartal weiter. Im Oktober haben die Betriebe ihre Gesamtproduktion erneut deutlich zurückgefahren.

 

Speaking Of The German Automobile Industry

And German industry in general. They couldn’t laugh off Tesla. Now the punches are coming in hot and heavy.

DaimlerAuto

German Industrial Job Losses Top 80,000 With Daimler Cuts – Germany’s economy may have narrowly avoided a recession, but the pressure on the country’s industry shows no sign of abating.

Daimler AG said this week it will shed 10% of management positions at its Mercedes unit, lifting the tally of job cuts announced this year across Germany’s manufacturing sector to more than 80,000, according to Bloomberg calculations.

Companies from Volkswagen AG to Siemens AG are letting workers go as Germany’s powerful automotive industry struggles with a shift toward electrification and self-driving cars, and makers of machinery and robots are hit by slower exports and trade disputes. Makers of well-known German products such as Meissen porcelain and WMF kitchenware are also trimming their workforce.

Spend More Like We Do

Says the EU. We don’t always know what we’re spending it on but we sure know how to do it.

Waste

As “German industrial orders fell more than expected in August on weaker domestic demand, adding to signs that a manufacturing slump is pushing Europe’s largest economy into recession,” the EU Commission advises Germany to spend more.

And EU knows all about spending other people’s money. It spent nearly four billion euros last year alone on things it can’t even account for – and most of the things it can account for are wasteful enough.

Konjunkturschocks“ – EU-Kommission drängt Deutschland zu mehr Ausgaben

Brewing Has Always Been Big In Germany

An Industrial Crisis Is Brewing in Germany – The country’s position as the “engine of Europe” is under genuine threat.

Germany’s industrial sector contributes more than one-fifth of GDP and is usually a huge asset. Right now this export engine is pulling the economy down. Signs of distress are everywhere. German manufacturing activity is at a decade low, according to IHS Markit’s purchasing manager’s index. The Ifo Institute estimates that more than 5% of manufacturing companies have cut working hours and about 12% expect to do so during the next three months. German machinery orders declined 9% in the first six months of the year, according to the VDMA association, which represents the country’s engineers. In chemicals and pharmaceuticals, domestic production fell 6.5% in the first half of the year, while domestic car output has fallen 12% this year. Auto exports have dropped 14%.

What Goes Up

Must go flat.

Flat

And then shrink.

Germany’s economy is now shrinking – The mood music had grown so ominous that the shock was somewhat muted. After weeks of dismal survey and industrial-output numbers, it was little surprise to learn on August 14th that Germany’s gdp had contracted by 0.1% in the second quarter of 2019 compared with the previous three months. The economy has been essentially flat over the past year. Household spending, bolstered by wage growth in a tight labour market, has held up but the slump in manufacturing, which represents over one-fifth of output, is deepening. Companies are cutting work hours and issuing profit warnings. Many analysts think Germany is heading for outright recession.

Will the government open the spending taps? Probably not.

German Of The Day: Igelsex

Go figure. It’s pronounced “eagle sex” but it means hedgehog sex.

Igelsex

Germans kept up at night by noisy igelsex (that’s hedgehog coupling) – Police called out to reports of nocturnal disturbances find hedgehogs ‘having fun.’

I don’t buy it, though. I think these Germans were kept up at night, tossing and turning, worrying about the German economy.

“Germany’s economy is highly dependent on exports, and that’s what’s hitting the German economy now. If the trade conflicts persist for many more years, this will hit Germany very hard.”

German Of The Day: Freier Fall

That means freefall.

Freefall

German manufacturing reports industry ‘in freefall’ – Key survey points to weakest sentiment in nine years.

The Ifo Institute’s manufacturing business climate index slumped to minus 4.3 in July from positive 1.3 the previous month. The reading was the lowest in more than nine years and echoes a separate survey released on Wednesday that pointed to mounting troubles in Europe’s powerhouse economy.

“No improvement is expected in the short term, as businesses are looking ahead to the next six months with more pessimism.”

Productivity?

What’s that? I live in Berlin.

Productivity

Asked which region in Europe has been the absolute worst at realizing its economic potential, most people probably wouldn’t name Berlin. The German capital isn’t just nice to live in, it’s throbbing with excitement; a startup is reportedly created here every 20 minutes, and if you leave for a night out, you risk not coming back for a week. But according to a study of the economic performance of European regions, Berlin is indeed the worst.

What is more important: productivity or a city’s peculiar, esoteric feel? Berlin is one of the places where this question is especially poignant.

Are We Having A Recession Yet?

I don’t get it. I thought the German boom had boomed out. That’s all they’ve been talking about here for the past few months. More fake news, I guess.

April

Speaking of employmentGerman Joblessness Falls in Sign of Confidence in Growth Rebound – German unemployment continued its decline, suggesting companies are keeping faith in the prospects for Europe’s largest economy.

The number of jobless people fell 12,000 in April, more than economists expected, to 2.22 million. The labor agency said demand for workers continues to be very high.

This is the lowest unemployment rate for April in 30 years.

Arbeitslosigkeit – niedrigster Aprilwert seit 30 Jahren