German Economy Faces Coronavirus Hit as Export Orders Sink

This post was originally published on this site
https://i-invdn-com.akamaized.net/news/LYNXNPEC3B0CQ_M.jpg
© Reuters. German Economy Faces Coronavirus Hit as Export Orders Sink© Reuters. German Economy Faces Coronavirus Hit as Export Orders Sink

(Bloomberg) —

Germany’s economy is facing renewed pressure from beyond its borders as export orders plunge and manufacturers worry about the impact of the coronavirus outbreak on their supply chains.

The latest purchasing managers index from IHS Markit shows industry still in a contraction, and expectations for output over the next 12 months dropping.

Overall economic momentum was broadly unchanged from January, signaling that domestic demand remains in reasonable shape. Services still slowed though, in part due to weaker tourist numbers.

The report illustrates the uncertain outlook for growth in the 19-nation euro area, potentially extending its protracted slowdown. Manufacturers in both Germany and France reported disruptions due to the coronavirus outbreak in China, where many factories have had to shutter their operations.

A gauge of German manufacturing activity unexpectedly rose, but IHS Markit said that was likely a distortion caused largely by supply chain disruptions.

That number “flatters the sector’s current trajectory,” said IHS Markit economist Phil Smith. “These are still early days in what could potentially be a lengthy saga.”

A report for the euro area is due at 10 a.m. Frankfurt time.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment