Germany: Industrial production contracts more than expected in September
November 7, 2011
In September, industrial production dropped a seasonally and working-day adjusted 2.7% over the previous month, which was well below both the revised 0.4% contraction observed in August (previously reported: -1.0% month-on-month) and market expectations, which had expected industrial output dropping by 0.9%. The reading represents the sharpest monthly fall since February 2009. The September deterioration was broad-based, with all the main categories registering contractions over the previous month, particularly in manufacturing (August: -0.4% mom; September: -3.0% mom) and in mining and quarrying (August: -2.3% mom; September: -3.0% mom). Compared to the same month last year, industrial output decelerated from an 8.4% increase in August to a 5.4% expansion in September, thus marking the slowest pace since January 2010. As a result, the trend continues to suggest that the industrial sector is losing momentum, with annual average growth in industrial production edging down from 10.4% in August to 10.1% in September.
Author: Ricardo Aceves, Senior Economist