Germany, the biggest economy of the European market, posted its lowest industrial production annual rate in almost a decade – a clear manifesto of the on-going trade war between the two largest economies of the world.
Germany is known to have a thriving economy as it heavily relies on exporting goods to Asia has now fears of recession and job cuts as it suffers from a 1.5% decline in its industrial production rate in June.
The second quarter rate is 1.8% less than its first quarter rate of the current year. Analysts expect a lower output in July.
“If traders needed further evidence of the slowing global economy, they only needed to look towards German industrial production figure,” Fiona Cincotta, market analysts at City Index said.
The declining global economy alarmed the German workforce for a possible recession if the industrial rate will continue to slide.
Andreas Scheurle of DekaBank said in a statement, “We assume that this is the prelude to a technical recession.”
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