Not With A Bang, But A 28% Annualized Decline: Charting The End Of The German Manufacturing Miracle
Slowly, but surely, the global economic growth dynamo is growing ever dimmer and dimmer. Two days ago we reported that that relentless driver of global growth - exports - finally succumbed to reality, as slowly but surely the paradigm of everyone exporting to someone else with magically nobody importing, logically collapsed. This is now followed by German manufacturing, that traditional and only source of strength in Europe, which half an hour ago was reported to drop 4.3%, compared to an expectation of a 0.1% gain. In other words, as the chart below shows German factory orders have just suffered their worst three, post-Reunification months outside of the late crash itself, falling at a 28% annualized rate, to take the total back to where it first stood over five years ago. Reaction is swift: Italian and Spanish bonds immediately drop, with the yield returning to 6.23% and 5.52%, forcing the ECB's monetization actions to have to fight not only "speculators" but also reality.
h/t Sean Corrigan