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German October industrial production rebounds, but misses forecas

News Desk
Published: 08 December 2016 Thursday, 07:36  AM

German October industrial production rebounds, but misses forecas

Bonn, Dec 07 (deutschenews24.de/dpa) -- German industrial production rebounded at a less-than-forecast 0.3 per cent in October, underlining concerns about the state of the nation`s key manufacturing sector.

The boost was an improvement on September`s 1.6-per-cent slump, but still short of the 0.8 per cent analysts had forecast.

The Economics Ministry data also showed a glimmer of improvement for September, thanks to an upward revision of that month`s data. The original report had been a decline of 1.8 per cent.

Industrial production was 1.2-per-cent higher compared with the same month last year, the figures show.

"Industrial production improved only marginally in October, providing further evidence of Germany`s industrial weakness," said ING Bank economist Carsten Brzeski.

Still, the ministry expects a "certain pickup" in the industrial sector in the coming months, despite Wednesday’s data pointing to what it said was "a tentative start" to the final three months of the year. 

Helping to drive the October rise was a solid 1.7-per-cent gain in industrial production in the building industry.

Construction companies have been benefited from strong demand for housing resulting from ultra-low interest rates, a solid jobs market and higher pay settlements. 

However, output in the manufacturing sector grew by just 0.1 per cent, while energy production fell by 0.5 per cent, the ministry said. 

The production data follow the ministry`s Tuesday release of data showing monthly new orders surging by 4.9 per cent thanks to strong demand from the world`s two biggest economies - China and the United States.

 

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