Is German Economy Slumping?
According to June data, German manufacturing export sales and new orders were rising at their slowest pace in over 2 years. That is, Markit's manufacturing PMI dropped from 56.9 to 55.9, which marked 6th straight decline and a minimum of around 18 months. The level of expansion in new orders hit its 2-year minimum. Export sales growth dropped to the lowest in over 2 years.
Principal economist at IHS Markit, Phil Smith said: "The question is whether there is worse still to come. Firms have indeed become less optimistic in their expectations toward output, with tariffs seen as an added headwind to growth in the months ahead."
The disappointing data and trade tension with the US keep fueling speculations about economic recession in the most powerful economy of the Eurozone.