Germany: Industrial output contracts for second consecutive month in October
December 7, 2017
In October, industrial production decreased 1.4% from the previous month in seasonally- and working-day adjusted terms, a sharper contraction that the previous month’s revised 0.9% drop (previously reported: -1.6% month-on-month). The result strongly contrasted market expectations of 1.0% expansion; it was also the biggest drop since December 2016.
The energy sector rebounded significantly in October, while substantial contractions in the mining and construction sectors drove the downturn. Looking at the sector level showed that October’s result was the reverse of the prior month: The two sectors that contracted in October expanded in September, while the sector that expanded in October contracted in September.
Compared to the same month of the previous year, growth in industrial production was 2.7% in October, down from the revised 4.1% in September (previously reported: +3.6% year-on-year). Meanwhile, annual average growth in industrial production was stable at the previous month’s revised figure of 2.6% in October.
Author: Jan Lammersen, Economist