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German Factory Orders Flop in April

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Today, amid the chaotic volatility surrounding the interest rate decisions out of Britain and the euro zone, a little piece of data slipped by almost unnoticed by many traders. Germany published data which revealed a stark 4.0% decline in new factory orders.

Expectations for this figure were for a 0.4% growth in the manufacturing sector of the German economy. No one was expecting such a dramatic flop. A series of articles have pointed to the faltering of industry across Europe, Britain, Japan and the United States. This data merely piles atop those earlier notions and strengthens the idea that global manufacturing and industry are in decline.

Whether high oil prices are to blame for this downturn or whether demand has slumped, one thing is for sure and that is global industry is beginning to gouge into economic recovery.

Survey data is also showing a flop in sentiment towards manufacturing and industry. The manufacturing PMI survey data out of China, Britain, and Germany this week all came out below forecasts, revealing not merely a physical decline, but a downward shift in outlook among manufacturers and purchasing managers.

With much of the forex world attuned to the news of Osama bin Laden's death and the interest rate differential between Europe and the United States, this industrial flop is passing by unnoticed and it is to our own detriment that we ignore its effects on the forex world.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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