Panshen Macro: German industry cannot recover before the external market recovers

According to Pantheon macroeconomist Melanie Debono, German manufacturers are still constrained by weak export markets. Friday's data showed that German industrial output fell by 2.4% in July, well above market expectations of 0.2%. At the same time, exports in the same month only saw a slight rebound. Debono warned that the weak demand for German goods seems likely to continue, with orders from major partners sluggish and the economy lacking in rise. She said, 'Unless there is an improvement in the external environment, it is unlikely that industrial production will emerge from recession.'