A senior economist at Commerzbank offers a grim outlook on the German industrial sector after the country’s factory orders plunged in November.

Key quotes

“German industry received 5.3% fewer new orders in November than in October. This means that the downward trend in order intake has if anything worsened.”

“However, due to the large order backlogs built up over the past two years, this is hardly having an impact on production.”

“Real sales, which correlate strongly with production, actually rose by 2.1% in November.”

“In view of the weaker order intake and the burden of high energy prices, production may therefore fall in the coming months, but a slump is unlikely.”