German recession looms as industrial orders drop more than expected

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German recession looms as industrial orders drop more than expected
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German industrial orders fell more than expected in August on weaker domestic de...

BERLIN - German industrial orders fell more than expected in August on weaker domestic demand, data showed on Monday, adding to signs that a manufacturing slump is pushing Europe’s largest economy into recession.

The economy shrank by 0.1% in the second quarter, and recent data have pointed to continued weakness in manufacturing in the third quarter. Most economists define a recession as two straight quarters of contraction. Finance Minister Olaf Scholz said last week that Germany would be able to cope with an economic crisis but added that he did not expect a downturn to be as bad as it was in 2008/2009.

Monday’s weaker-than-expected data added to the sense of gloom around the German manufacturing sector. FILE PHOTO: A steel worker of Germany's industrial conglomerate ThyssenKrupp AG stands a mid of emitting sparks of raw iron from a blast furnace at Germany's largest steel factory in Duisburg, Germany. REUTERS/Wolfgang Rattay/File Photo

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