Germany’s factory orders fell in October more than expected, signaling impact on German economy from Volkswagen emissions scandal. Such data may cause higher inflation in the Eurozone.
Volkswagen crisis led to a drop in its profits, which prompted Moody’s Ratings to downgrade the company’s rating.
Orders, adjusted for seasonal swings and inflation, fell 1.7% from August, when they dropped 1.8%, data from the Economy Ministry in Berlin showed on Thursday.
That’s the third consecutive decrease and compares with a median estimate of a 1% gain in a Bloomberg survey. Orders declined 1% from a year earlier.