Tuesday, June 5, 2012

German industry orders slump as foreign demand falters

(Reuters) - German industrial orders fell at their fastest rate since November 2011 in April as orders from abroad dried up, adding to signs that Europe's largest economy is heading for a slowdown.

Seasonally and price-adjusted order intake sank 1.9 percent on the month, Economy Ministry data showed on Tuesday, well below the consensus expectation for a decline of 1.0 percent in a Reuters poll of 34 economists.

The fall was driven by a 3.6 percent drop in orders from abroad. Orders for consumer and capital goods were the hardest hit, falling 5 percent and 3.3 percent respectively.

"Overall the data shows that Germany's comparatively robust economy has not escaped the crisis unscathed," said Peter Meister of BHF Bank.

"A lot of economic data coming out of the U.S. and big emerging markets has not been particularly positive recently. The German economy, which is very dependent on exports, will see a slowdown in the coming months," he added. Read More