Bloomberg: The German economy is down a ladder that leads down

German factory orders fell 7% in January, driven by a decline in orders for machines and vehicles, Bloomberg reports.

German factory orders fell in January by the most in a year, a poor start to a quarter when Europe’s largest economy may have struggled to achieve any growth at all.

Demand decreased 7% from the previous month, a far bigger drop than any economist predicted in a Bloomberg survey. A significant decline in orders for machines and vehicles such as ships and planes drove the weakness. Without large-scale orders, it slipped by 2.7%, the statistics office said.

Germany industry has been in a rut since mid 2022. That’s partly because of Russia’s invasion of Ukraine and the ensuing energy crisis, though weak demand from China has also contributed. US President Donald Trump’s tariff threats are heaping further gloom on businesses.

All that might yet be overshadowed by a massive defense and infrastructure package promised earlier this week by German Chancellor-in-waiting Friedrich Merz, who is working to form a coalition after winning the Feb. 23 election.

… Stock indices of leading Western countries are falling:

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