German economy started fourth quarter in disadvantageous position as private sector activity slowed down to the lowest level since 2015, while factories’ orders reduced first time in four years, Bloomberg reports.

According to IHS Markit, PMI index for the largest economy in Europe fell to 52,7 in October from 55,0 last month. This result is lower than all estimates of Bloomberg’s survey of economists.

Euro fell by 0,4% to $1,1426 after news was issued.

On Monday Bundesbank already informed that growth of Germany’s economy stalled in third quarter. Companies from Daimler AG to HeidelbergCement AG reduced profit outlook.

Among reasons for decline are problems of auto producers caused by new emission tests that restricted production. Some companies also feel consequences of emerging market downturn.

France informed about slowdown in output growth as well, while Renault reduced forecast for China.

Threats of trade war, uncertainty over Brexit, geopolitical instability influenced Germany’s economy in the beginning of fourth quarter. Those factors reduced companies’ expectations for the next 12 months to the lowest level in four years. At the same time German firms raised prices to protect profits. Service’s prices showed the biggest growth since the middle of 1997.