Germany: Industrial production declines in November
January 9, 2012
In November, industrial production dropped a seasonally and working-day adjusted 0.6% over the previous month, which contrasted the 0.8% increase observed in October. The monthly reading was, however, virtually in line with market expectations that had industrial output sliding 0.5%. The November contraction was broad-based, with all the main categories recording a deterioration over the previous month, particularly manufacturing and energy supply. Only construction bucked the trend, surging 4.5% in December due to favourable weather conditions. Compared to the same month the previous year, industrial production slowed from a 4.2% increase in October to a 3.6% expansion in November, which represents the weakest growth rate seen since January 2010. As a result, the trend continues to point downwards, with annual average growth stepping down from 9.4% in October to 8.7% in November.
Author: Ricardo Aceves, Senior Economist