German Industrial Production Growth Tops Expectations
Germany’s industrial output grew more-than-expected in October driven by the higher production of automobile and capital goods, data revealed Monday.
Industrial production climbed 3.2 percent month-on-month, faster than the revised 2.3 percent rise in September, Destatis reported.
The growth rate for September was revised up from 1.6 percent. Economists had forecast output to climb 1.6 percent again in October.
Compared with February 2020, the month before restrictions were imposed due to the corona pandemic in Germany, production was 4.9 percent lower in October.
The automotive industry, the main branch of manufacturing expanded 9.9 percent on month. Still, output was 6 percent below the pre-pandemic level.
Data showed that excluding energy and construction, production gained 3.3 percent from September. Production of intermediate goods climbed 4.0 percent and that of capital goods by 5.2 percent. Meanwhile, consumer goods output fell 2.4 percent.
Outside industry, energy production was up 4.0 percent and construction output increased 1.6 percent in October.
On a yearly basis, industrial output fell 3 percent, but slower than the revised 6.7 percent decrease posted in September.
Data released last week showed that factory orders growth accelerated to 2.9 percent in October from 1.1 percent in September.
Strong momentum at the start of the fourth quarter suggests that industry and construction are the economy’s hopes against a double dip, Carsten Brzeski, an ING economist said.
But the economist said given the negative impact from the latest lockdown measures on sentiment, services and consumption, this positive industrial momentum should not be enough to avoid a double dip for the German economy.