ECB Warns on Trade Tensions as Euro-Area Economy Falters

  • German factory orders slide 0.9% in third straight decline
  • Euro-area investor confidence drops to lowest in 15 months

An employee welds at a factory in Laupheim, Germany.

Photographer: Martin Leissl/Bloomberg

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The European Central Bank warned that a rise in trade protectionism would undermine the global economy, and said the U.S. would be among the worst-affected.

The cautionary comments coincide with data showing factory orders in Germany unexpectedly slid for a third month in March, another sign of the weakness that’s dogged the euro-area economy since the start of the year. Separate reports showed investor confidence in the currency bloc fell for a fourth month and a retail gauge suggested that sales contracted for the first time in more than a year.