I'll say it again: Germany's economy is in a bit more trouble than anyone will publicly admit. Quite a bit. German industrial output drops more than expected US News And World Report. Excerpts:
Industrial production in Germany dropped by an unexpectedly sharp 2.2 percent in April compared with the previous month, official data showed Wednesday, sending a downbeat signal about the economy's ability to shrug aside the eurozone debt crisis.
The decline was led by a 3.6 decrease in production of capital goods such as factory machinery and a 3.7 percent fall in production of consumer goods, the Economy Ministry said.
The drop followed a 2.2 percent month-on-month gain in March — a figure that was revised sharply downward from the initial reading of 2.8 percent
The Economy Ministry said that industrial production remains "very robust." It said one factor in the decline was the fact that April 30, the day before the May Day holiday, fell on a Monday — meaning that many people took the extra day off.
Carsten Brzeski, an economist at ING in Brussels, took a less rosy view.
"The German economy's immunity against the eurozone sovereign debt crisis is clearly fading away," he said, pointing also to shrinking order books and a recent drop in business confidence.
"Even if it will not fall, the eurozone's last stronghold is faltering," Brzeski added. "For the time being, it is a stabilization at a high level. However, latest data clearly indicate that Germany is not an economic island."
Economic attention will refocus to Spain, Greece, and Italy, but I bet there's been a 1000 percent increase in heated, secret meetings happening all over Corporate and Financial Germany right now.. They know they're in trouble, and I'm sure some of them know just how much trouble that is.
Spain's calling for money Saturday. What will Germany ask for in return? Do they really think they'll see that money again?
Industrial production in Germany dropped by an unexpectedly sharp 2.2 percent in April compared with the previous month, official data showed Wednesday, sending a downbeat signal about the economy's ability to shrug aside the eurozone debt crisis.
The decline was led by a 3.6 decrease in production of capital goods such as factory machinery and a 3.7 percent fall in production of consumer goods, the Economy Ministry said.
The drop followed a 2.2 percent month-on-month gain in March — a figure that was revised sharply downward from the initial reading of 2.8 percent
The Economy Ministry said that industrial production remains "very robust." It said one factor in the decline was the fact that April 30, the day before the May Day holiday, fell on a Monday — meaning that many people took the extra day off.
Carsten Brzeski, an economist at ING in Brussels, took a less rosy view.
"The German economy's immunity against the eurozone sovereign debt crisis is clearly fading away," he said, pointing also to shrinking order books and a recent drop in business confidence.
"Even if it will not fall, the eurozone's last stronghold is faltering," Brzeski added. "For the time being, it is a stabilization at a high level. However, latest data clearly indicate that Germany is not an economic island."
Economic attention will refocus to Spain, Greece, and Italy, but I bet there's been a 1000 percent increase in heated, secret meetings happening all over Corporate and Financial Germany right now.. They know they're in trouble, and I'm sure some of them know just how much trouble that is.
Spain's calling for money Saturday. What will Germany ask for in return? Do they really think they'll see that money again?
Posts
No comments:
Post a Comment