Is European Industrial Machinery Headed for a Breakdown?May 07, 2014
The volume of new orders received by German industrial firms unexpectedly fell in March, according to data released today:
In contrast to expectations for a slight rise (+0.3% m/m), the -2.8% m/m decline was led by a steep decline in export orders and, in particular, those from other Euro Area countries (-9.45% m/m):
Among Industrial groups whose foreign sales makes up more than 75% of total sales, performance was flat to negative over the last month:
Sales growth estimates have fallen, on average, over the last three months. Particularly striking is the nearly 10% decline in sales growth expectations for the Industrial Machinery sub-industry:
Furthermore, our point-and-figure work suggests that the European Industrial Machinery group is at somewhat of a crossroads:
Such weakness in orders in what is arguably the strongest economy in Europe is not very encouraging.