German industrial orders fell by 1% in November 2018, demonstrating that the US-China trade war, Brexit uncertainty and slower growth in emerging markets are all having a detrimental effect on the country's economy. The Markit Manufacturing Purchasing Managers' Index (PMI) for Germany dropped to 50.0 from 51.1 in October, its lowest level since October 2016. Waning demand from the eurozone, which was down 11.6%, has forced the German government to look to domestic consumption to spur the economy by bringing in tax cuts for middle and high-income residents, as well as raising child allowances.
German industrial orders fell by 1% in November 2018, demonstrating that the US-China trade war, Brexit uncertainty and slower growth in emerging markets are all having a detrimental effect on the country's economy. The drop was significantly more than the predicted 0.4% fall and, while domestic orders rose 2.4%, the 3.2% decrease in international orders hurt Europe's biggest economy. Waning demand from the eurozone, which was down 11.6%, has forced the German government to look to domestic consumption to spur the economy by bringing in tax cuts for middle and high-income residents, as well as raising child allowances.