More gloom, worse than it is "expected". The Eur gets doggish.
GERMANY:
FACTORY ORDERS FALL -2.9% (+0.4%) in Jun; -6.1% (-4.7%) Y/Y
Europe is heading into a recession.
DATA SNAP: German Jun Mfg Orders Adj -2.9% MM:Unadj -6.1% YY
Wed, Aug 6 2008, 10:00 GMT
djnewswires.com
DATA SNAP: German Jun Mfg Orders Adj -2.9% MM:Unadj -6.1% YY
By Niels C. Sorrells
Of DOW JONES NEWSWIRES
BERLIN (Dow Jones)--German manufacturing orders fell for the seventh consecutive month, defying forecasts of a rise as foreign orders dropped dramatically, the German Ministry of Economics said Wednesday.
The data release showed a seasonally adjusted fall of 2.9% on the month in June in manufacturing orders, compared with a forecast for a rise of 0.5%.
The order decline was largely due to sagging foreign demand, which dropped 5.1% on the month, the ministry said. Meanwhile, domestic demand fell 0.6% on the month.
"Foreign demand is slowing to a greater extent than domestic demand, which is also headed lower," stated the ministry. "The outlook for industrial production has thus gotten worse, in general."
On the year, orders fell an unadjusted 6.1% in June, following a downwardly revised 2.5% decline in May. Economists had forecast a drop of 4.6%.
Seasonally adjusted growth on the month in May was also revised downward to a 1.4% fall, from last month's reported drop of 0.9%.
The news comes as the German government contemplates a faltering economy. Officials have already said they expect second-quarter gross domestic product to contract after the blistering pace of growth in the first quarter. Additionally, leading economists have started to raise the specter of a recession in 2008 or 2009.
Web site: www.bmwi.de
-By Niels C. Sorrells, Dow Jones Newswires; +49-30-2888-4128; niels.sorrells@dowjones.com
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(END) Dow Jones Newswires
August 06, 2008 06:00 ET (10:00 GMT)
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