- Carsten Brzeski, a senior economist from ING
German industrial orders fell more than expected in August due to weak domestic demand, the Federal Ministry of Economics and Technology reported on Friday. Order intake dipped to a seasonally adjusted -1.3%, down from 0.3% in the preceding month. At the same time, domestic bookings tumbled 3.0 per cent.
"During the summer months, the German economy's safety net against the euro crisis has become dangerously thin," said Carsten Brzeski, a senior economist from ING in Brussels. "Order books have rapidly become smaller and at the same time companies have increased their inventories; a combination boding ill for growth in the coming months. The downswing in German industry will continue."
Also Friday, the European statistics agency, Eurostat, said the eurozone's economy contracted more rapidly in the second quarter of 2012. Region's gross domestic product shrank by 0.2% from the first three months of the year, meeting analysts' expectations.
The Stoxx Europe 600 Index jumped 1.02 per cent to 274.11. Germany's DAX Index soared 1.27 per cent to 7,397.87 and France's CAC 40 Index edged higher 1.64 per cent to 3,457.04.
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