The Leading European Economy Is Still At Risk
Germany’s economy is still wound able, as the country’s factory orders fell unexpectedly in February, for the second month in a row.
Following the revised 2.6% fall in January, orders in Europe’s leading economy declined again by 0.9%, the Economy Ministry’s in Berlin report indicated on Wednesday. Orders have standardly been adjusted for seasonal shifts inflation, and they were 1.3% under the last year’s results.
The latest reports oppose the data that indicated the rise and the strengthening of the German economy, highlighting the Germany’s central bank predictions for economic growth. The country’s recovery is still under pressure from the situation in Greece, and the complicated relation with the Russian Federation, but the data provided by the Markit Economics surveys demonstrate the building momentum in services and manufacturing in the Eurozone leader. Chief economist at UniCredit Bank AG in Frankfurt, Andreas Rees claims that “There is absolutely no need to be worried,” stating that “The upward trend in business sentiment is intact, thereby heralding better hard economic data in the next few months.”
The Eurozone currency, Euro rose again against the US dollar, going up 0.3% reaching 1.0843 US dollars.
The data indicated that the domestic demand for investment goods rose 1.9%, while the orders of consumer foods jumped 2.9% in February, compared to January. But the export orders fall of 1.6% was recorded. The factory orders in January were reported down 3.9% by the German Economy Ministry. The Ministry of Economics issued a statement saying that “Due to weak bulk orders, demand was significantly weaker in the first two months.” The statement continued to claim that “At the same time, sentiment indicators are sending positive signals. Overall, the trend in the industry should continue to point moderately upward.”