“Manufacturing in deep trouble” — except that this is happening in Germany.
I bring you bad economic news — but even the BBC can’t say this is “due to Brexit”
German manufacturing orders have fallen 11.3% in the last 18 months
Yesterday Germany produced its latest figures on the state of its manufacturing industry. They present a worrying picture for that country. With Germany being the economic powerhouse of the Eurozone, this is equally bad news for the EU.
These disastrous figures follow the news last month that the German Government’s forecast for economic growth this year has been slashed to just 0.5%. This is less than half that predicted for the UK (1.2%) by the UK’s Office for Budget Responsibility.
German manufacturing orders
- Manufacturing orders in Germany continue to fall
2. Orders in May fell by -8.6% on the same month a year earlier
3. They have fallen by over 11% in the last 18 months“The Federal Statistical Office (Destatis) reports that price-adjusted new orders in manufacturing had decreased in May 2019 a seasonally and calendar adjusted 2.2% on the previous month.”- Destatis, Wiesbaden, Fri 05 Jul 2019.
This large monthly fall comes on the back of a trend which has developed in the German industry over the last 18 months, since late 2017.
If this happened in the UK, the BBC would no doubt say it was “due to Brexit”. However as far as I am aware Germany has not voted to leave the European Union.
Remain MPs will of course point to global factors, and will no doubt try to blame Donald Trump for his policies in backing US business. Sadly for Remain MPs, this argument doesn’t hold water. The fall is not only from Germany’s EU27 customers or its global customers — it’s almost as bad in its home market, with a fall of 9.4% in the past 18 months from domestic customers.
Why should any of us care about German economic data?
The news we bring you from Germany yesterday is not about the details of how the German economy is faring. It’s about Brexit.
On a weekly basis, the BBC manages to find a negative economic story about Brexit, often ignoring the positive economic news. If and when the UK finally exits the EU, it is inevitable that the BBC and other pro-EU media outlets will present a stream of negative economic news regarding the impact of Brexit.
We fully expect the federalist fanatics in the EU to make life as difficult as possible for the UK. We have no doubt that it will be a bumpy ride at first. Readers only have to look at how Switzerland was treated by the EU last week to see this.
This article has been researched and written to show that the largest economy in the EU is having difficulties. And this is VERY bad news for the Eurozone, and for the UK’s exposure to EU debts under Theresa May’s abdominal ‘Withdrawal Agreement’.
I hope that by publishing this news from Germany yesterday, it will help to show the BBC and Remain MPs that not everything is “due to Brexit”, and that some other countries are managing to have troubles without even talking about leaving this sclerotic institution.
[ Sources: Destatis — official German Statistics Agency ]