BRUSSELS (AFP) – Factories in the 15 nations sharing the euro saw demand slump in October in the face of recession, according to official EU data on Monday.

New industrial orders in the eurozone slid 4.1 percent in October from September and plunged 15.1 percent compared with the same month in 2007, the European Union’s Eurostat data agency said.
“The eurozone industrial orders data were simply appalling, adding to the evidence that manufacturing activity has fallen off a cliff,” said economist Howard Archer at IHS Global Insight.
The slump followed a drop in new orders in September when they fell 5.4 percent over one month and 1.9 percent over one year, according to revised figures from Eurostat.
Although the plunge in October was driven by a 9.4 drop in volatile orders for transport items like trains and airplanes, the weakness was widespread with machinery and equipment orders down a steep 6.5 percent.
Archer said that the data bode ill for future production and cast a pall over the sector’s outlook.
“Indeed, it seems certain that eurozone manufacturers will continue to find life very difficult over the coming months as they are hit by deep slowdowns in both domestic demand and in key export markets,” he said.
“Furthermore, eurozone manufacturers will be mortified to see the euro rising back up to trade around 1.40 dollars after sinking to 1.25 dollars in November, and also soaring to a lifetime high near parity against sterling,” he added.
A weaker currency usually helps makes exports more competitive on international markets.
Meanwhile, in the 27-nation EU, new industrial orders fell 6.3 percent over one month in October and 17.9 percent over one year.