http://www.spiegel.de/international/business/0,1518,777930,00.html
Various indicators released in recent weeks point to a deceleration of Europe's largest economy.
The Ifo business climate index for July fell sharply to its lowest level in nine months, and analysts say it is likely to keep dropping. The ZEW investor sentiment index showed the weakest level since January 2009.
And the Markit/BME purchasing managers' index for the German manufacturing sector fell 2.6 points in July to 52 points, its lowest level since October 2009. "New order levels went into reverse in July, as fewer export sales helped end a two-year period of sustained growth," Tim Moore, senior economist at Markit, said.
German engineering orders in June rose by just 1 percent year-on-year, after having jumped 21 percent in May, the VDMA engineering industry association said. "There are initial indications that demand for invesment goods has become less dynamic in Germany and in the other euro member states," said VDMA economist Olaf Wortmann.
In addition, top German firms have given more cautious outlooks for the remainder of 2011. Analysts have been paying particularly close attention to what is being said by the chemicals industry, which is regarded as a bellwether for the general industrial outlook because it supplies many different sectors.
BASF, the world's largest chemicals company, last week reported a slowdown in sales growth in the second quarter and said its business momentum was likely to continue weakening in the second half.
Various indicators released in recent weeks point to a deceleration of Europe's largest economy.
The Ifo business climate index for July fell sharply to its lowest level in nine months, and analysts say it is likely to keep dropping. The ZEW investor sentiment index showed the weakest level since January 2009.
And the Markit/BME purchasing managers' index for the German manufacturing sector fell 2.6 points in July to 52 points, its lowest level since October 2009. "New order levels went into reverse in July, as fewer export sales helped end a two-year period of sustained growth," Tim Moore, senior economist at Markit, said.
German engineering orders in June rose by just 1 percent year-on-year, after having jumped 21 percent in May, the VDMA engineering industry association said. "There are initial indications that demand for invesment goods has become less dynamic in Germany and in the other euro member states," said VDMA economist Olaf Wortmann.
In addition, top German firms have given more cautious outlooks for the remainder of 2011. Analysts have been paying particularly close attention to what is being said by the chemicals industry, which is regarded as a bellwether for the general industrial outlook because it supplies many different sectors.
BASF, the world's largest chemicals company, last week reported a slowdown in sales growth in the second quarter and said its business momentum was likely to continue weakening in the second half.
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