Germany: Industrial output falls more than expected
January 7, 2011
In November, industrial production contracted 0.7% over the previous month in seasonally and working-day adjusted terms. The reading contrasted the revised 3.0% expansion observed in October (previously reported: +2.9% month-on-month) and undershot market expectations, which had seen industrial output falling 0.2%. On an annual basis, industrial production slowed from a 12.4% expansion in October to an 11.1% increase. The November contraction was broad-based, as all main categories of the index fell over the previous month. Manufacturing output dropped 0.6% over the previous month, contrasting the 3.0% expansion registered in October. Mining and quarrying contracted 2.1% in November, down from the 3.8% increase tallied in October. Finally, construction slipped 1.1% (October: + 3.1% mom). Despite the drop, the trend continues to point to a sound recovery, with the annual average variation in industrial production rising from 7.0% in October to 8.8% in November, confirming that industrial production remains one of the key engines of economic growth.
Author: Ricardo Aceves, Senior Economist