German industry output falls unexpectedly in October

0
© Reuters. FILE PHOTO: A worker mounts a tyre at the serial production BMW i3 electric car in the BMW factory in Leipzig© Reuters. FILE PHOTO: A worker mounts a tyre at the serial production BMW i3 electric car in the BMW factory in Leipzig

BERLIN (Reuters) – German industrial output fell unexpectedly in October, data showed on Friday, adding to signs that a cooling trend in Europe’s largest economy will continue in the fourth quarter.

Data from the Statistics Office showed industrial output fell by 0.5 percent, confounding a Reuters forecast for an increase of 0.3 percent.

The figure for September was revised down to a rise of 0.1 percent from a previously reported increase of 0.2 percent.

A breakdown of the data showed that activity in the manufacturing, energy and construction sectors had contracted.

The Economy Ministry put the contraction down to continued bottlenecks in new car registrations due to the introduction of stricter pollution standards, known as WLTP.

But export-dependent manufacturers in Europe’s economic powerhouse are also feeling the brunt of disputes over tariffs on goods between the United States and two of its most important trading partners: China and the European Union.

The ministry said it expected the industrial sector to recover in the last two month of the year as car registration bottlenecks clear up.

Data published on Thursday showed that strong demand from abroad was behind an unexpected rise in German industrial orders in October. The figures suggested that exports may still support the economy despite broader global trade friction.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.