The number of indicators pointing to foul economic weather continues growing. A new index released on Friday testifies to increasingly empty order books. Experts predict that over 200,000 jobs are at risk.
The more economic data comes in, the worse the coming recession appears likely to be. According to a key German economic climate index released on Friday, industry in Germany is facing a difficult road ahead. The index, which measures the economic health of producers in Germany as well as the amount of orders they are receiving, dropped unexpectedly sharply in November relative to its already low October level. It now stands at 36.2, much lower than the 40.5 level many had expected, according to a Reuters survey.
Much of that drop comes as a result of a sharp falloff in exports, a branch that had much of the work in keeping the German economy humming in recent years.
The news comes on the heels of Thursday’s announcement that the Ifo global business sentiment index dropped to its lowest level in 20 years. The index fell from an October level of 73.4 to November’s 60.0.
“We are still at the beginning of an economic downturn that will continue to expand next year and will ultimately take hold in all sectors of the economy,” Hans-Werner Sinn, head of the Munich-based Ifo Institute, told the N