Euro Crisis Reaches German Industry

[marmar]

from Der Spiegel:



German companies believe the euro crisis has damaged their prospects for growth in 2012, according to new figures released on Thursday. Manufacturing activity hit a three-year low and export orders have also seen a sharp drop. The data suggest the crisis is starting to hit the previously robust German economy.

For a long time, the German economic powerhouse seemed immune to the effects of the European debt crisis. In recent weeks, however, economic indicators have begun to suggest that dark clouds may be gathering over Germany.

The latest bad news came on Thursday. New figures showed that Germany's private sector shrank in June for the second month in a row, and manufacturing activity hit a three-year low.

The purchasing managers' index compiled by the research institute Markit based on a survey of 1,000 firms fell by 0.8 points to 48.5 percent -- the lowest figure since June 2009, and below the 50-point mark which is considered to separate growth from contraction. The index for the whole of the euro zone was 46, the same as last month and the lowest level in three years. ..............(more)

The complete piece is at: http://www.spiegel.de/international/germany/global-crisis-hits-german-industry-a-840230.html