Yesterday we mentioned that Germany might be in the midst of pulling off another economic miracle.
The miracle is this: Every time it looks as though Germany might succumb to the recession being experienced by its neighbours, somehow Germany holds on.
And this seems to be happening again. Germany’s PMI numbers were strong, and thanks to the rebound in global trade (which is being everywhere from Korea to China to Brazil) Germany stands to benefit from the fact that it’s an export powerhouse.
From Bloomberg on today’s German factory orders, which beat big.
Orders, adjusted for seasonal swings and inflation, jumped 3.9 per cent from September, the Economy Ministry in Berlin said today. It revised September’s drop to 2.4 per cent from 3.3 per cent. The increase in October is the biggest since January 2011 and exceeds the median forecast for a 1 per cent gain in a Bloomberg News survey of 42 economists. From a year earlier, orders fell 2.4 per cent when adjusted for work day.
Here’s a chart that shows the comeback.
Photo: Bloomberg, Business Insider