Germany factory orders have tumbled dramatically since the start of 2018
The problem isn't just a trade war affecting exports at this point. When you look at the data, foreign orders may be down by 9.6% relative to a year ago but domestic orders are also down by a whopping 7.4% relative to the same period.
The weakness in factory orders seen above shows that conditions are at their worst since February 2016. With PMI survey data still showing no signs of abating pressures on the manufacturing sector, the hard data will also continue to feed into the rhetoric that German economic growth is very much close to stagnation in Q2 2019.
And so far, the outlook for the second half of the year isn't that bright either with global trade tensions still present.
