German factory orders slumps to record low

German factory orders fell at its fastest pace since 2009 following the Eurozone stagnating economy and the geopolitical issue looming.   For the month of August, 5.7% was registered, a figure that has not been witnessed since the 2009 global financial crisis.   German economy ministry nevertheless played on the safe side stating that school holidays are partly guilty in these figures.   Economists still are sceptic on their side as the data came out to be really worse than they has anticipated.   German GDP also went through a rough period with a 0.2% fall in the three months to June.   Holger Schmieding, chief economist at Berenberg states that Germany’s stagnation is a normal process with the geopolitical tensions and it will quicken its pace for the remainder of the year.   Germany is one rare contributing economy in the Eurozone having witnessed stability amidst rough seas.   Export being its forte, it also managed to balance domestic wages and low borrowing costs; the labour market also sailed smoothly.   Source: The Financial Times
Priscilla Camryn By: Priscilla Camryn