Germany has long been the prop that held up the economically feeble EU, in which more than helf the 27 members that will remain in the bloc after Britain leaves are economic basket cases (some due only to the strictures of Eurozone membership, others because of the traditional weakness of their national economies,) so with Germany slipping towards the recession we and other well informed blogs and news site have predicted since Merkel’s ‘open doors’ immigration policy allowed a couple of million iliterate, uneducated, unskilled and unemployable immigrants to flood into the country, incresing the bill for welfare services exponentially, problems for Germany’s high – tech manufacturing led economy which needs highly skilled, well educated and adaptable workers and professionals was inevitable.
When we wrote about the early signs of recession in the German economy we were scoffed at, called far – right nut jobs and conspiracy theorists, and inevitably, racists because anyone but a racist would know that a couple of millon unemployable immigrants living on benefits can only boost a high – tech economy.
Today, for all the auusurances by Europhile politicians and bureaucrats that everything in the European Union is on the up and up, Germany is on red alert for recession following the biggest collapse in activity for its mighty industrial sector since the financial crisis. Technically Germany already is in recession, they’re just not willing to admit it.
The eurozone’s bigge,t and most powerful economy relies on exports but its car industry has been punished by a slowing global economy, government policies promoting electric vehichles which nobody want to buy because they are hideously expensive and useless, and the fallout of the trade war between the US and China.
Financial information service IHS Markit’s latest snapshot of Germany’s manufacturing growth – where a score under 50 signals contraction – dipped to 41.4, its worst level since 2009, as demand from non – EU trading partners slumped. There were also worrying signs that the manufacturing slump is spreading to the service sector after firms in that sector experience their first fall in new business since 2014.
Confidence among German businesses is the weakest since 2012, private sector job creation is stalling after six years of growth and companies are eating into backlogs as new orders begin to dry up, the figures showed.
Germany’s economy shrank an overall 0.1pc between April and June. Monday’s dire survey data comes after recent official figures showed a sharp 0.6pc drop in industrial production in July.
Phil Smith, principal economist at IHS Markit, said Germany’s manufacturing data was “simply awful”, with combined readings for services and manufacturers “firmly in contraction territory” and the weakest for almost seven years.