Europe’s powerhouse economy Germany was set back on its heels on Monday with the news industrial orders have plunged to their lowest level since the 2009 financial crisis.
With 40 percent of German exports going to the eurozone, the slump can only be a symptom of the wider malaise of low European growth, as no-one is buying what Germany has to sell, or cheaper suppliers have moved in at a time when no-one can resist a bargain.
“The economic situation remains very difficult, also in Germany as far as industrial orders go. That’s not great. In the eurozone overall there is massive restraint because their economies are not doing well,” says Baader bank’s Robert Halver.
One set of consumers does have money, but Germans still are not spending enough despite the efforts of Brussels to encourage the Germans to boost domestic demand. And, in an export-led economy, these latest figures will do nothing for consumer confidence.