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May 12, 2018 | French Manufacturing Slumps 1.8%: Worst Quarterly Drop Since 2012

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
French manufacturing fell 1.8% in the first quarter. Industrial Production fell 1.2%, the worst start in 6 years.

First Germany, Now France

The eurozone recovery is faltering, first with Germany, now with France.

Germany

In February, German Industrial Output fell by 1.6 percent after rising by a revised 0.1 percent in January, data from the Economy Ministry showed. February’s drop was the biggest since August 2015 and compared with a Reuters consensus forecast for a rise of 0.3 percent.

In March, German Industrial Production Rebounded 1.0% but that would seem to leave Germany in the red.

Upswing Intact?

Germany’s economy minister said the ‘Upswing Remains Intact‘ and industrial output edged up 0.1 percent on the quarter.

Really?

The math seems screwy, no doubt due to seasonal adjustments or lies, but here’s the kicker: “Factory orders dropped for a third month running in March as foreign demand weakened.

Germany New Orders Dip 0.9% in March

As translated from Destatis.

According to preliminary data from the Federal Statistical Office (Destatis) in March 2018, price-adjusted new orders in the manufacturing sector were 0.9% lower than in the previous month, seasonally and calendar- adjusted . For February 2018, after revision of the preliminary results, there was a decrease of 0.2% compared to January 2018 (provisional value: + 0.3%).

Trump’s trade war with everyone and his reimposed Iran sanctions will add to European misery.

Mike “Mish” Shedlock

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May 12th, 2018

Posted In: Mish Talk

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