Germany: Industrial output expands more than expected
October 7, 2010
In August, industrial production expanded 1.7% in seasonal and calendar adjusted terms over the previous month. The monthly expansion came in well above the 0.1% increase observed in July and overshot market expectations, which had industrial production growing 0.5%. The strong monthly figure mainly reflected a sharp expansion in manufacturing, which grew 1.8% month-on-month, contrasting the 0.2% contraction tallied in July. In addition, investment goods production jumped 2.4% over the previous month (July: -1.0% mom), while durable goods production posted a strong 2.4% increase (July: -0.2% mom). As a result of August's reading, the trend in industrial production continued to points upwards with annual average variation in industrial production jumping from 1.0% in July to 3.4% in August which marked the highest level since September 2008.
Author: Ricardo Aceves, Senior Economist