Germany's Industrial Production Growth Improves
Germany’s industrial production growth accelerated in September, albeit at slower than expected pace ahead of new restrictions imposed to contain the coronavirus, data released by Destatis showed on Friday.
Industrial output climbed 1.6 percent on month, bigger than the revised 0.5 percent rise seen in August but slower than economists’ forecast of 2.7 percent.
Excluding energy and construction, production in industry was up 2.0 percent in September.
Within industry, production of intermediate goods showed an increase of 1.4 percent. Output of consumer goods advanced 3.0 percent and that of capital goods by 2.2 percent.
Production in the automotive industry, the largest segment of manufacturing, grew 10 percent on the previous month.
Outside industry, energy production was down 2.5 percent, while construction output grew 1.5 percent.
Data showed that annual fall in industrial production came in at 7.3 percent in September. However, this was slower than the 8.7 percent fall logged in August.
Compared with February, the month before restrictions were imposed due to the corona pandemic in Germany, production were 8.4 percent lower in seasonally and calendar adjusted terms.
Given the sentiment impact from the latest lockdown measures but also weaker foreign demand as many other eurozone countries have also gone into lockdown again, this positive momentum in industrial production will not be enough to avoid double dip for the German economy, Carsten Brzeski, an ING economist said.
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