ZCZC
BCN-12
GERMANY-ECONOMY-INDICATOR-PRODUCTION
German industrial production plunges in October
FRANKFURT AM MAIN, Dec 7, 2019 (BSS/AFP) – German industrial production
unexpectedly fell back in October, official data showed Friday, adding to a
gloomy outlook for Europe’s powerhouse economy as the slump in the country’s
manufacturing sector shows no signs of abating.
Factory output tumbled by 1.7 percent month-on-month, federal statistics
authority Destatis said, compared with a 0.6 percent drop in September.
Analysts surveyed by Factset had predicted a slight jump in industrial
production.
The picture was even bleaker in a year-on-year comparison with output down
5.3 percent on October 2018 — “which is the steepest year-on-year decline
since 2009,” said Capital Economics analyst Andrew Kenningham.
The disappointing figures come a day after Destatis revealed that new
industrial orders also fell in October, the latest sign of order books
shrinking at a time of weaker global growth.
“Today’s data suggests that the German economy is continuing to flirt with
stagnation and contraction in the final quarter of the year,” said ING Diba
bank analyst Carsten Brzeski.
“Trade conflicts, global uncertainty and disruption in the automotive
industry have put the entire German industry in a headlock, from which it is
hard to escape.”
BSS/AFP/HR/1005