Take a look at the latest grim economic data from Europe: Industrial output in Spain dropped for the tenth straight month, and now the German economy appears to be spluttering:
German exports, a major source of growth for the country, fell in June for the month, after recovering the previous month from an earlier decline, the federal statistics office said. . . .Data released Tuesday showed an unexpectedly steep decline in German factory orders in June, as demand from other euro-zone countries slumped. And sentiment indicators point to weakness especially in German manufacturing, which accounts for about a quarter of the country’s nominal economic output. Germany’s closely watched Ifo business confidence survey showed a third straight monthly decline in July.
The Eurozone’s largest economy is being weakened by the Club Med contagion, and the lower euro (which has fallen nearly 10 percent since February) isn’t providing much of a cushion to Germany’s vital export sector.This is beginning to look like Europe’s nightmare scenario.