German factories orders unexpectedly fell in April, Bloomberg reports. They have been falling for four straight months already. That allows assuming that economical slowdown that was observed in the beginning of this year can get worse.

Orders adjusted taking into account seasonal swings and inflation declined by 2,5%. And this is despite of the fact that analysts forecasted increase by 0,8%. Orders also slumped by 0,1% compared to last year. This is the first yearly decline since 2016. Euro area orders dropped by 10%. Capital goods orders decline was 16%.

Such alarm signals from the largest economy of euro area are creating additional problems ahead of European Central Bank meeting that will take place next week. Leaders of ECB will have to decide on the future of the economic stimulus program.

Experts still hope that economy growth will recover in the second quarter.

After showing the highest growth in decade last year, economy of euro area is showing drop in economic confidence amid trade tensions with the US and political turmoil in Italy. Private sector activity index from IHS Markit declined in May, while index of investor’s confidence by Sentix dropped to the lowest level since 2012.