Economist: German industrial orders point to a decline in production - financial expert warns of further downturn

Economist: German industrial orders point to a decline in production - financial expert warns of further downturn

According to a report by www.n-tv.de, Commerzbank chief economist Jörg Krämer stated that the order development in German industry points to a further decline in production. Non-large orders fell 0.6 percent in November from the previous month, marking the third consecutive decline. Krämer predicts that the German economy will shrink slightly in the winter half of the year after gross domestic product fell by 0.1 percent in the third quarter. A further minus of 0.3 percent is expected for the entire year 2024.

Due to the repeated declines in the order development of German industry and the forecast decline in gross domestic product, a clear trend is beginning to emerge. A further decline in industrial production could lead to a reduction in economic output, which could have a negative impact on the market. Companies in the industrial sector could be forced to reduce production and cut jobs, which in turn could lead to an increase in unemployment. In addition, a declining manufacturing sector could also lead to lower investment activity and overall weaker economic growth. Investors could become more cautious and cautious as a result of these developments, which could lead to a general market slowdown.