We’ve told you before: You can’t escape geography. In 2011, some 71% of Germany’s exports ended up in other European countries. The continent is struggling with 10.6% unemployment. That rises to 11.6% in the 17 countries with the euro as currency. In other words, it’s bad.
So it makes sense to see Germany’s vaunted industrial engine sputtering since its biggest customer is hurting. Today a report showed German industrial orders tumbled 3.3% in September—seasonally adjusted and adjusted for inflation. That’s the sharpest decline in the last year.
Here’s a look at how things have been going, from the always-insightful High Frequency Economics: