Geoffrey Smith

Investing.com — The Eurozone’s largest economy looks set for at least one quarter of economic contraction after incoming orders to German factories fell for a third month in a row in April.

After declines of 4.2% in two previous months and 0.8% the prior two, orders fell on the month. The numbers were – again – a disappointment, falling well short of expectations for a bounce of 0.3%. March’s data were revised up from an initial estimate of -4.7%, however.

The figures are the latest evidence of a sharp slowdown in Germany in response to Russia’s invasion of Ukraine, which has triggered steep rises in energy costs. It is running at an average annual rate of 33.5%. This can be largely due the fact that industrial electricity has risen nearly 90 percent and gas prices have increased by 150%.