German orders fall off a cliff

New orders for German-made goods slumped in August, dragged down by a sharp drop in demand from within the Eurozone.

Data released today by the Federal Statistical Office showed a 5.8% decrease in real manufacturing orders compared to July. This follows a surge in July which was driven by major contracts in the transport sector, including aircraft, ships and trains.

While orders from outside the Eurozone provided a slight boost, increasing by 3.4%, this was offset by a significant 10.5% decline in orders from within the currency bloc.

The figures paint a worrying picture for Europe’s largest economy, suggesting that the manufacturing sector is struggling with weak demand from its key trading partners.