Germany

摘要

Germany continues to sufferfrom faltering external demand, the traditional motor of its economy, as exports registered a record 10.6% (m-o-m) drop in November. This has particularly distressed the industrial sector which saw production plummet during the same month. The manufacturing sector has been especially hard hit, with orders posting a massive third consecutive monthly drop in November and the purchasing manager's index reaching an all-time low in December. Further signs of the economy's ill health have been reflected in the Ifo business climate index which fell for the seventh month in a row in December, whilst unemployment rose for the first time in nearly three years. This represents a significant shift, because the labour market had proved to be relatively resilient last year in the face of slowing activity - until now. Given that the government has been struggling to reduce unemployment over the past decade, this latest news is especially unwelcome.