Germany’s labour market is still defying the laws of economic gravity. Unemployment is lower yet again, but may be starting to show early signs of coming back down to earth. It is bound to be a soft landing, but real activity indicators like the recent dip in GDP and the latest contraction in engineering orders in January, highlight the risks that Germany’s economic spring will peter out soon. With so much of German economic demand dependent on its Eurozone partners, entrenched recession forces in the single market and the slowdown in the global economy at large underline the risks ahead for Germany. It will get sucked down into the bog of much slower growth and possible recession in the coming months.
Highlights:
3,000 German jobless fall, lower than expected in February
German enginering orders down 2% y/y
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