- VP Bank
Industrial orders in Germany unexpectedly dropped in August, fuelling fears that Europe's largest economy is being hit by slowing global growth. Orders, adjusted for seasonal swings and inflation, dropped 1.8% on a monthly basis in the given period, following a revised decrease of 2.2% in July. The reported number missed market expectations of a 0.5% increase in August. On a yearly basis, the gauge advanced 1.9% in the reported month, after posting a revised 1.3% fall in the previous month. At the same time, the market consensus projected an increase of 5.6% year-on-year in August. The recent data enhances a picture of waning demand from abroad, especially China and other emerging markets. That suggests the strong German exports, which supported growth in the first half, could lose momentum. Meanwhile, August factory orders don't yet reflect the impact of Volkswagen's cheating on the US emissions tests revealed in September.
In the meantime, the latest Euro zone's retail PMI data showed a fifth straight monthly increase in sales in September, with the rate of growth picking up slightly from that seen in August. The retail PMI measure reached 51.9 points in September, up from 51.4 in the preceding month.
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