Trade dispute with the USA: orders from German companies decline significantly

New business in the industry decreased by four percent. Experts suspect that the trade dispute with the US is the cause. Nevertheless, they remain optimistic.

Trade dispute with the USA: orders from German companies decline significantly

In view of trade dispute with United States, German industry has lost as many orders as it has been for about one and a half years. DasNeugeschäft shrank in June by four percent to previous month, Wiedas Federal Ministry of Economics. Ökonomenhatten only expected a decline of 0.4 percent after growth of 2.6 percent in May. It should also have played a role Verunsicherungendurch trade policy, Teiltedas ministry with reference to customs dispute with USA.

The foreign demand for German industrial goods fell by 4.7 percent in total in June. The euro area orders declined by 2.7 percent, while world's demRest business dropped by 5.9 percent. Domestic demand shrank by 2.8 percent. Economists assume that DerAufschwung is at its peak in Germany. Many experts and research institutes have refore reduced ihreKonjunkturprognose for 2018 to just under two percent.

"Perhaps fear of a trade war already provides for a certain Zurückhaltungbei of recent orders," said chief economist of VP Bank, Thomas Gitzel. "This is an astonishing debacle to this extent," said Alexander Krüger of house lamp to recent loss of contract. But stabilization of Stimmungsindikatorenspreche against anor slump.

The machine manufacturers – with automotive and chemical industry diewichtigste export industry – also see little cause for concern. "The machine builders can be very satisfied with ErstenHalbjahr 2018, in total dieAuftragsbücher have filled up by seven percent", explained Chefvolkswirtdes Industry Association VDMA, Ralph Walton. "Diepositiven expectations for current year have been fully met." While orders abroad increased by six percent, y rose by ten percent in home market.

For example, investors are once again looking more positively at economy of entire eurozone: economic index rose in August for second consecutive year, as investment advisory Sentix to ir survey among investors. "Investors are thus rewarding dieEntspannungssignale in EU's trade dispute with USA," said Sentix expert Manfred Hübner. US President DonaldTrump said EU commission chief Jean-Claude Juncker VorvergangeneWoche surprisingly to refrain from imposing tariffs on EuropäischeAutos for time being. Instead, re should be negotiations on Abbauvon trade barriers.

Date Of Update: 07 August 2018, 12:00

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