German Industry Faces Slow Recovery Amid US Tariff Pressures

German industrial orders stagnated in February, following a less severe decline in January. Despite signs of recovery in March, the impact of U.S. tariffs continues to suppress the sector. Experts foresee a slow recovery, with domestic orders down 1.2% and foreign orders up slightly by 0.8%.

In a development that underscores continued challenges, Germany's industrial orders remained stagnant in February, albeit with a less severe decline in January than initially reported. Economists anticipated a 3.5% rise, but orders stood still, per Germany's federal statistics office's report on Friday.

Experts indicate that the U.S. tariffs remain a significant obstacle, exacerbating the friction in Germany's industrial sector. 'The order situation remains bleak,' said Alexander Krueger, chief economist at Hauck Aufhaeuser Lampe Privatbank, anticipating ongoing job losses.

Despite the pressures, there's a glimmer of hope as Germany's PMI data for March reveals the first production uptick in nearly two years, although the recovery may be gradual and modest, according to Ralph Solveen of Commerzbank.

(With inputs from agencies.)