Another negative signal is coming from the German economy and consequently for the economy of the whole euro area. In fact, in July manufacturing orders in Berlin and its surroundings decreased by 2,2% compared to the month of June, a figure worse than analysts' expectations who had forecast a 1,4% decline. The budget on an annual basis is even heavier: compared to July 2018, the federal statistical institute recorded a real collapse, by 5,6%. The decline mainly affects high-end orders, with a high economic amount: if these are excluded, it must be said that the trend even records a growth of 0,5%.
The decline, according to Berlin assessments, is attributable above all to the trend of orders arriving from the rest of the world, therefore from the “non-euro” area. And the Ministry of the Economy - which calls into question the protectionist policy of the United States and the trade fight with China - also sees darkness for the future. An improvement in the situation is not expected, due to the by now structural difficulties in the manufacturing sector.
Therefore, the August data should also be negative for women uncertainties that also come from another front: that of Brexit. If industrial orders do not unexpectedly recover, Germany would therefore experience a contraction in GDP also in the third quarter of the year. And by now the service sector itself, in Germany, is feeling the icy wind of the economic crisis upon itself.
