According to the Economy Ministry in Berlin, factory orders in Europe’s largest economy declined by the most since January of 2009 for the month of November.  Survey results showed a 4.8% slide lower in orders from October – when survey results actually surged by 5%.  Attributed to slower demand growth, the drop off in orders is matching relatively pessimistic data for the European Union – which is still suffering from 13-year highs in unemployment.  Regional jobless rates rose by 10.3% in the month of November, boosted by the reluctance of companies to increase hiring ahead of a debt crisis resolution.

Unfortunately, near term improvements for the manufacturing sector continue to remain bleak as consumer sentiment remains suppressed in light of concerns over the regional economy and global slowdown.  Last month, European consumer confidence dropped off to the lowest levels in more than two years, forcing central bank officials to lower growth estimates for the region to 1.4% from previous forecasts of a more robust 2-2.5% rate of expansion.  Germany was expected to contribute heavily to the higher pace of growth – with forecasts for the German economy to expand by 4%.  However, with the manufacturing slump, the country is on pace to post a slightly lower 2.5% acceleration in growth.

Not surprising, the euro currency took a hit following the news – which is compounding already heightened fears of further turmoil in the region on a lack of a formidable resolution.  The Euro fell further through the 1.2800 support in the overnight session, dipping to a low of 1.2705 in the last couple of hours – recovering a bit to trade at 1.2715 currently.