German manufacturers aren’t waiting in line for Czech industrial goods anymore. That’s the headline on today’s Hospodářské noviny, which writes that the industrial sector of Europe’s largest economy fell 1.5 percent y-o-y in June. The economic daily adds that Czech companies exported CZK 443bn worth of machinery and transportation items to Germany in the first half of the year, illustrating how important a trading partner the country is. And while the German services sector is keeping the economy out of recession, it’s not improving the mood of industrial sector managers. The PMI index, which tracks production, orders and employment in the manufacturing sector, fell yet again in July, this time from 45 to 43.2 points, having dropped below 50 points in January. Michal Skořepa, an analyst at Česká spořitelna, told HN said the biggest problem lies to the east. “The primary reason for the slowing of Germany’s industry is lower demand from China. Cars and machines make up nearly half of all German exports to China and stell producers are suppliers for these exports.”
