Is This Why The EU Did Not Want Us To Leave?
Germany’s industrial base is showing consistent signs of an economic crisis amid trade tensions between the U.S. and the European Union. Output from German factories unexpectedly declined for a third consecutive month according to statistic reported by Reuters and Bloomberg.
The figures, published last Friday, showed a 1.1 percent decrease for September, missing economists’ forecast of a 0.2 percent increase. Exports from Europe’s manufacturing powerhouse fell 0.9 percent and the trade surplus, a point of contention with President Donald Trump, narrowed further.
The news came at the end of a challenging week for the Eurozone economy, with other published statistics showing fears of a trade war between western and eastern blocs denting manufacturing confidence and Germany reporting another drop in factory orders.
Berlin’s Economic Ministry blamed the apparent weakness on temporary bottlenecks related to new emission-test procedures for cars. “In light of the slow order intake but a large backlog of work, the industrial upswing should continue as the squeeze loosens,” it said in a statement, adding construction business is booming.
In the Netherlands, manufacturing production fell 0.9 percent in July, while Spanish output fell for a third time in four months. But there was better news from France, where production beat expectations by rising 0.7 percent. Separately, German labor costs rose 0.2 percent in the second quarter compared to the previous three months.