Industrial production in Germany fell by 4.6 per cent in December, more than in any month since German reunification in 1990, according to the Economics Ministry in Berlin today. This follows a 3.7 per cent fall in November. As a result output fell by a record 12.0% over the December 2007 figure.

On Thursday, the Economy Ministry reported that German new orders fell 25.1% in the 12 months to December, falling 6.9% on the November number. Which means there is worse to come, a feeling which is only confirmed by the German January Purchasing Managers Index which showed that manufacturing contracted at its fastest pace in over 12 years in January as further slumps in demand also lead employers to cut staff at a record pace. The headline index in the Purchasing Managers’ Index fell to 32.0 in January from 32.7 in December, bringing it further below the 50.0 mark separating contraction from expansion.