Germany: Industrial production rebounds in November
Industrial production grew 1.1% month-on-month in November, contrasting the revised 1.0% contraction in the prior month (previously reported: -1.7% month-on-month). The figure marked the strongest expansion in output in one-and-a-half years and beat market expectations of a smaller increase in production. Increased output of capital goods, consumer goods and construction-sector activity buttressed the headline figure as intermediate goods and energy output fell in the month.
Although industrial output returned to growth in November, it is still down from the average seen in the third quarter. As such, the industrial sector remained in a pickle owing to lingering trade tensions and weakened global economic momentum as well as a still-struggling automotive sector.
Meanwhile, industrial production fell 2.6% year-on-year in the month, up from the revised-but-still-steep 4.6% drop in October (previously reported: -5.3% year-on-year). Annual average industrial output consequently dropped 3.2%, which is up from the 3.4% contraction in the prior month.
Looking ahead, industrial output in Germany should recover this year from a weak 2019; however, the balance of risks remains tilted to the downside amid protracted external headwinds.