German factory orders add to Eurozone woes

 
Billy Ehrenberg
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German factory orders haven't fallen this far since January 2009.

German factory orders haven't fallen this far since January 2009.

Orders for August dived by 5.7 per cent month on month after a bullish 4.7 per cent jump in July. The fall was far worse than a group of economists polled by Bloomberg had anticipated.

As a measure taken in isolation it wouldn't be as alarming, but the German manufacturing sector shrank last month according to Markit PMI data, coming in at 49.9.

Its services sector grew, at 55.7, with any score above 50 indicating growth.

Germany is usually a reliable motor for Eurozone economic performances, and it will be worrying for many that the economic bloc's strongest economy is suffering.

Year-on-year factory orders also fell, but by a smaller 1.3 per cent.

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