German orders unexpectedly declined by 0.4% in June. Economists expected a 0.5% rise.
Wait a second, aren’t these the same economists who said Brexit would be a disaster?
Well don’t worry about that. This is just one of those globally unexpected soft patches.
Please consider German Factory Orders Slide Amid Dwindling Euro-Region Demand.
German factory orders unexpectedly declined in June as demand for investment goods from within the euro area slumped in the run-up to Britain’s referendum on European Union membership.
Orders, adjusted for seasonal swings and inflation, fell 0.4 percent from May, when they rose a revised 0.1 percent, data from the Economy Ministry in Berlin showed on Friday. That’s the third consecutive month demand remained below economists’ estimates. The median in a Bloomberg survey was for an increase of 0.5 percent. Orders dropped 3.1 percent from a year earlier.
The Bundesbank has reassured investors that Germany’s economy merely took a breather in the second quarter and Britons’ vote to quit the EU hasn’t fundamentally changed the outlook for a growth pick-up in the current period.
All these people who told us what a disaster Brexit would be, now say it’s “Just a Breather” (starting three months ago).
What a joke.
Mike “Mish” Shedlock
What is the EU going to say when the economy in Britain starts to improve after Brexit. They will find some other seeming logical nonsense excuse for it.
Normally a breather is taken after a rapid expansion. When was the last time any economy in Europe had a rapid expansion?
Is that what Deutschebank is taking, a breather?
They shoot horses, don’t they?