“…a catastrophe and very bad news….We have a huge problem in the rest of the euro area that now seems to be reaching Germany and its labor market. For the coming quarters, the economic outlook is quite gloomy.”-Thomas Harjes, economist at Barclays

On 06 November 2012, Deutsche Bundesbank revealed that there is no let up in the dropping factory orders for German companies.  September had a 4.7% drop, October saw a 4.6% drop, from the year before.

From October to September (month to month) there was a 3.3% drop, which was much more than analysts had expected.

Factory orders from European Union (EU) customers (Euro-area orders) make up the biggest part of the drop, followed by orders outside the EU (export orders): “The weak economic environment in the euro area and in the broader global economy is having a bigger impact on demand for German industrial goods. Therefore industrial production may weaken further in the months to come.”-Statement from Germany’s Economy Ministry

Germany is considered the economic powerhouse of the European Union.  Almost a month ago the President of the Deutsche Bundesbank, Jens Weidmann, said: “The German economy continues to be in robust shape….”

Now one analyst says Germany “…is unlikely to be spared from a technical recession.”-Annalisa Piazza, New Edge

Christian Ott, an investment bank economist said: “…the [German] resilience has come to an end…”