German Imports Suggest Trade-Inflicted Slowdown Is Hitting Home

(Bloomberg) --

Germany’s trade-inflicted industry slump is increasingly affecting the economy at home.

Imports declined for a third month in August when compared to the previous year, according to figures from the statistics office. The drop could signal weakening domestic demand as companies respond to a deteriorating growth outlook. Factory orders also showed weakness within Germany.

The report also showed exports fell 3.9% year-on-year, after a gain of a similar magnitude the previous month.

The report is the latest in a string of disappointing data highlighting the precarious situation in Europe’s largest economy. After output shrank in the second quarter and few signs of a pickup in momentum, the risk of another contraction in the July-September period is running high. That would put the country into a technical recession and further stoke concerns about the health of the euro-area economy.

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