Germany: Industrial production expands in October
December 7, 2011
In October, industrial production increased a seasonally and working-day adjusted 0.8% over the previous month. The reading contrasted the revised 2.8% contraction recorded in September (initially reported: -2.7% month-on-month) and surprised private sector analysts on the upside, who had industrial production rising only 0.3%. The October expansion was broad-based, with all the main categories recording improvements over the previous month, particularly manufacturing (September: -2.8% mom; October: +0.8% mom) and energy supply (September: -4.5% mom; October: +1.8% mom). Compared to the same month last year, industrial output decelerated from a 5.4% increase in September to a 4.1% expansion in October, which represented the slowest pace since January 2010. Consequently, the trend continues to point downwards, which suggests that the industrial sector is losing steam. In addition, annual average growth in industrial production dropped from 10.1% in September to 9.3% in October.
Author: Ricardo Aceves, Senior Economist