German recession fears after big decline in industrial production

Sales of cars and machine parts to far east fall as US-China trade conflict takes its toll

German industrial production has suffered its biggest annual decline in nine years after the escalating trade war between the US and China took its toll on exports.

Europe's economic engine, which has increasingly relied on exports to Asia to bolster factory output, was left teetering on the edge of recession in the second quarter after a 1.5% fall in industrial production in June, which is expected to be repeated in July.

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