Photo: Ralph Orlowski / Reuters
The German economy, the largest among European countries, is moving towards a recession, sure the German manufacturers. It is reported Bloomberg.
Orders for factories and service companies are falling at the fastest pace over the past six years, and now more and more companies expect production will fall and will not rise over the next 12 months. This is the first decline in 2014.
The most pessimistic picture is in the automotive industry. It is due to, in particular, the escalation of tensions in global trade and lower demand in China. Employment in manufacturing fell at the fastest pace in seven years.
The European Central Bank (ECB) has already begun to lay the Foundation for additional monetary stimulus and is expected to cut interest rates at the next meeting in three weeks. In Germany, the government has taken only preliminary steps toward a program of tax incentives.
Earlier it was reported that investors have lost faith in Germany’s economic Outlook. Europe’s largest economy declined in the second quarter of this year due to the global slowdown and uncertainty, due to the trade war, the United States and China.
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