German banks and savings banks intend to launch emergency programmes to help medium-sized businesses weather the crisis better. This was announced by Federal Finance Minister Wolfgang Schäuble and Federal Economics Minister Rainer Brüderle on Wednesday, Dec 02, 2009 - - which was termed a successful outcome of the economic talks held at the Federal Chancellery. High-level representatives of the business sector, lenders and the trade unions were invited by Chancellor Angela Merkel to discuss the serious economic situation. The focus was on how to prevent the credit crunch that experts have forecast.

In a signal of the fragile recovery, German factory orders unexpectedly fell for the first time in eight months in October, led by a decline in export demand.

The manufacturing orders fell 2.1% from September, when they rose 1.3%, the Economy Ministry in Berlin said today.

Export orders fell 3.5% in October and domestic sales dipped 0.5%, today’s report showed. Orders for investment goods declined 4.5%.

The ministry said sales of big-ticket items were below average and declining orders for the car industry also had a dampening effect.

In September, orders were revised up to 1.3 percent, from the previously reported 0.9% rise. The rise in August was 2.1%.

The ministry said a soft market for manufacturers in Germany's car industry, including suppliers, impacted the figures.

“The orders trend is, however, still pointing upward,” the ministry said. “The recovery in industrial production is likely to continue in the fourth quarter with weaker dynamism.”

The German public car scrappage scheme which involved a payment of €2,500 to people who traded in an old car for a new one, finished in September.