German manufacturers have a large order book after the bottlenecks that appeared during the Covid epidemic disappeared, and the performance of the service sector has also improved with rising consumer demand.
Ralf Solvin, an economist at Commerzbank, said “rapid increases in interest rates around the world appear to be affecting demand for German industrial goods”, adding that production will suffer as demand for goods declines.
“What we’re seeing is contrary to expectations of the economic recovery that started showing up in many forecasts in the second half of the year,” he said in a note to clients, Ralph said. on the contrary, the risks of recession are increasing.”
Germany avoided a recession over the winter, although the stagnation of output in the first quarter disappointed economists who had expected a recovery.
Yesterday, European Central Bank President Christine Lagarde said the “outlook is getting worse” for eurozone manufacturers.
This is in line with S&P Global surveys, which showed activity in Germany’s service sector picking up, while factories slowed amid falling demand.
BMW, in turn, warned that the global economic outlook is still uncertain and tense, to echo those concerns with other automakers, such as Volkswagen and Mercedes-Benz.
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