China the only bright spot in Germany’s trade profile
German industrial orders plunge, despite increase in exports to China
German industrial orders dropped by 2.5% in April, the fourth consecutive monthly decline, missing estimates amid weak domestic and foreign demand.
“It is worrying,” comments the center-right daily Die Welt, “that industrial orders dropped significantly both at home and abroad. Domestic orders fell by 4.8% in April against the previous month, while orders from the euro zone fell vertically by 9.9%.”
China, according to the official data published on Thursday, was one of few places to increase orders from Germany.
“Other foreign countries continued to increase their orders. Outside of the euro zone, foreign orders rose by 5.4%. Exports to the US from Germany are flat year on year but exports to China rose.”
The numbers came in lower than analysts polled by Reuters and marked the first time German industrial orders dropped for four-straight months since the financial crisis.
Some economists are pointing to rising uncertainty driven by protectionist measures enacted by the Trump administration, which have cast some doubt on Germany’s otherwise positive economic outlook.