April 1 (Bloomberg) -- German plant and machinery orders extended a record decline in February, prompting the VDMA machine makersâ association to cut its output forecast for 2009. Orders dropped 49 percent from a year earlier after declining an annual 42 percent in January, Frankfurt-based VDMA said in a statement today. Thatâs the biggest drop since data were first compiled in 1958. VDMA said it now predicts plant and machine production will drop between 10 percent and 20 percent this year, more than the 7 percent decline predicted on Feb. 10. âThe fact that we have to withdraw our forecast after just six weeks is extremely unsatisfactory,â VDMA Managing Director Hannes Hesse said in the statement. âBut the dramatic decline in orders and sales leaves us no choice.â The global financial crisis has damped demand for German exports, forcing manufacturers to curb production and cut jobs. VDMA said in February that plant and machine makers will shed as many as 25,000 workers this year as sales falter. The Organization for Economic Cooperation and Development said yesterday it expects the Germany economy, Europeâs largest, to shrink 5.3 percent in 2009 before showing a âslowâ recovery in 2010. VDMA said today export orders plunged 50 percent in February from a year earlier and domestic demand fell 45 percent. In the three months through February, overall orders declined 44 percent from the same period a year earlier. VDMA surveys all large German machinery makers and most small ones. Its statistics capture orders at companies that employ 15 percent of all factory workers and account for 13 percent of total manufacturing sales. http://www.bloomberg.com/apps/news?pid=20601100&sid=aHuwmcYVIAs0&refer=germany Somebody in London named Angela Merkel is dreaming !!!!!!
in july trichet raised rates. he also said he said in november he saw no credit crunch in europe. on the contrary he saw credit expansion. oh la la monsieur trichet. what a prick you are.