Posted on 01/08/2012 12:57:33 PM PST by TigerLikesRooster
German Foreign Orders Plunge...Again
by Robert Brusca January 6, 2012
German orders are losing momentum again and rapidly after a false signal of a pause in the unraveling as of October. Orders in October had surged by 5% (M-o-M) and a surge of that degree blunted a lot of downward momentum that had seemed to be in train as October posted a very powerful one-month gain. Yet, now, in the light of the 4.8% drop in November and the September drop of 4.6%, we are left instead with a legacy of extreme volatility and of clearly waning momentum in what was one the Zone’s stalwart economy Now it has warts and it is stalling.
Foreign orders are now much weaker year-over-year as they are off by 7.7% compared to domestic German orders which are nearly unchanged (-0.1%) on the year. German domestic demand is still more or less stable on this report but overseas markets are crumbling.
While German domestic orders are nonetheless weakening, near term they are down at a 4.9% pace over six-months and at a 10.8% pace over three-months, foreign orders to German firms are dropping at rates of 22% to 23% over both three- and six-month horizons expressed at annual rates of change. There is nowhere to hide.
(Excerpt) Read more at haver.com ...
P!
No surprise. The deflating PIIGS economies are probably a major factor. In 2006, 2/3 of Germany’s trade surplus was with its EU trading partners.
I was talking to a relative, a long-time investor from Wall Street. I’ve been considering taking a position with a German-owned company. One of the points I mentioned to him regarding my hesitancy is that Germany is bound to dump the Euro and return to the DM. But this will give them a stronger currency than most of their customer-nations has, which will kill their exports and harm their businesses.
Anyway you slice this situation, everyone is going to collapse. I’m thinking no on the German-owned company since I’m working for a smaller, American company that has a fairly guaranteed revenue stream for the next few years through the healthcare mandates.
He agreed with my reasoning.
The US can easily fix this problem. Germany just needs to call on US officials to “fix” their numbers. They are really good at it. They do it here on a constant basis.
You mean we see another “unexpected improvement” announced by gov.?
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