Germany: Industrial output drops in August
October 8, 2012
In August, industrial production contracted 0.5% over the previous month in seasonally adjusted terms. The print contrasted the revised 1.2% expansion seen in July (previously reported: +1.3% moth-on-month) and was broadly in line with market expectations of a 0.6% decline. Negative growth in manufacturing output as well as in construction were the main drivers behind the monthly contraction. In annual terms, industrial production declined a working-day adjusted 1.4% in August, slightly faster than the 1.3% contraction recorded in July. As a result, the trend continues to point downwards, with annual average growth in manufacturing production falling from 2.0% in July to 1.2% in August, the slowest pace since June 2010.