German Manufacturing Sinks Deeper Into Contraction in March




 

(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.

Germany's manufacturing slump deepened this month amid tensions in global trade.

IHS Markit's Purchasing Managers' Index for the sector fell to 44.7, the lowest since 2012 and well below economists' expectation of 48. That's the third consecutive reading below 50, which indicates contraction. Gauges for new orders and employment declined.

The euro dropped after the survey was published and was down 0.4 percent to $1.1331 as of 09:32 a.m. Frankfurt time.

"The downturn in Germany's manufacturing sector has become more entrenched," said Phil Smith, principal economist at IHS Markit. "Uncertainty towards Brexit and US-China trade relations, a slowdown in the car industry and generally softer global demand all continue to weigh heavily."

The European Central Bank this month recognized that the euro zone economy is weakening by announcing a new program of long-term loans for banks. Officials say they're still determining whether the slowdown is temporary after they ended a bond-purchase program at the end of 2018.

Germany's composite index, which includes services, slipped to 51.5, the lowest in almost six years. The services index came in at 54.9 after posting 55.3 in February.

To contact the reporter on this story: Brian Swint in London at bswint@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, David Goodman

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

COMMENTS

More Related News

Trump
Trump's Biggest Move to End the 'War on Coal' Won't Rescue the Industry

(Bloomberg) -- President Donald Trump is scaling back sweeping Obama-era curbs on greenhouse gas emissions from power plants burning coal, his biggest step yet to fulfill his campaign promise to stop a "war" on the fossil fuel.Yet the Environmental Protection Agency's rewrite of the Clean Power Plan,

U.S. Navy Presents Evidence of Iran
U.S. Navy Presents Evidence of Iran's Role in Attack on Tankers

(Bloomberg) -- A U.S. navy investigator presented what he said was evidence of Iran's involvement in the attacks on tankers near the Persian Gulf, laying out the most detailed assessment that's been made public since the incident raised tensions in the region earlier this month.Commander Sean Kido, an

China Is Buying Iranian LPG Despite Sanctions, Ship-Tracking Shows
China Is Buying Iranian LPG Despite Sanctions, Ship-Tracking Shows

(Bloomberg) -- After being hit by the trade war and U.S. sanctions on Iran, some Chinese buyers of liquefied petroleum gas from the Persian Gulf nation are finding it's too tough a habit to kick.China sourced around a fifth of its LPG -- used as cooking fuel, in cigarette lighters and to make plastic

U.S. Steel, Darling of Trump
U.S. Steel, Darling of Trump's Tariffs, Plans to Idle Plants

Starting in 2018, U.S. President Donald Trump has been touting the restorative value of the tariffs his administration imposed on imports that March. The decision comes amid falling steel prices in the U.S. due to worries of a glut from new capacity planned for the coming years. Major U.S. producers that had announced expansions or restarts include Nucor Corp., Steel Dynamics Inc., Commercial Metals Co., as well as U.S. Steel.

Right-wing extremist suspected of killing German official
Right-wing extremist suspected of killing German official
  • US
  • 2019-06-17 17:26:00Z

A German man with extreme right-wing views is the suspect police arrested over the weekend in the killing of a regional official who supported Chancellor Angela Merkel's welcoming stance toward refugees, prosecutors said Monday. The 45-year-old suspect, identified only as Stephan E. in line with privacy laws, is accused of killing Walter Luebcke, 65, with a pistol shot to the head earlier this month, Markus Schmitt, a spokesman for Germany's federal prosecutor's office, said. Investigators came to that conclusion based upon the suspect's publicly expressed political views and past actions, he said.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy

facebook
Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.