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.”

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German Of The Day: Auftragsschwund

That means a decrease in orders.

Auftragsschwund

Did the boom just go boom?

Orders slid 1 percent from October, and posted a year-on-year decline of 4.3 percent, the biggest in more than six years. The monthly decline was partly due to aircraft orders, which had jumped in October, as well as weakness in the euro area.

While there are questions over the outlook for the German economy, the euro area’s biggest, the Bundesbank has long expressed confidence that it will overcome the slump seen in mid-2018. Responding to the factory data on Monday, Commerzbank said the decline “should not be over interpreted.”

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