Sound bites: German new orders still fail to excite

There was a slightly stronger than expected 1.2% rebound in German new orders in January, but overall demand conditions still fail to excite any true notion of confidence ahead. Germany’s economy remains well behind in the recovery stakes. There a massive gulf between German optimism and economic reality. Considering all the huge stimulus thrown at the Eurozone economy in the last few years, German new order books are still lagging badly behind. German exporters are failing to exploit their dominant position in the global demand for manufactured machinery and capital goods. Despite the fragile GDP upturn in the last three quarters, Germany is still not showing any signs of budding economic spring. The ECB still needs to get back down to the policy drawing board to design more vibrant and sustainable recovery ahead for Germany and the Eurozone. It is High Noon for ECB policymakers, especially with a dip into deflation lurking round the corner.