What is Happening to the German Manufacturing Sector?

Manufacturing in Germany has hit some seriously hard times.

According to Business Insider, the recession in the German manufacturing sector is worse than experts previously thought. New purchasing managers’ data has been brought to light, painting a stark manufacturing picture in Europe’s largest economy.

According to the new data that has been made available, the German manufacturing sector is undoubtedly in a deep recession. Factories are cutting jobs in order to make up for a decline in output. Whether or not the situation will worsen remains to be seen. It is quite possible that Germany’s manufacturing sector is at the worst level that the current recession will see. This however depends on trade with China, as new data released from China suggests that plenty of new orders are set to come. For now, workers are being laid off and factory managers’ sentiments remain low.

A lot of the bad news coming out of Germany reflects broader regional trends in the Eurozone. Italy’s unemployment has risen even further to 10.7% after years of declining economic activity. The situation in the Eurozone is better than the current situation in Germany alone, but widespread concerns remain in place across the continent.

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5 years ago
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