German economy powers ahead in August as factory output grows
[FRANKFURT] German industrial output, a key indicator of economic health, grew faster than expected in August, data showed on Monday, putting Europe's biggest economy on course for a strong performance this year.
Output grew by 2.6 per cent month on month in August, federal statistics authority Destatis said.
Analysts had forecast output growth of just over 0.8 per cent in August after a marginal contraction of 0.1 per cent the previous month.
Production increased in all industrial sectors, except construction, the statisticians calculated.
Industrial production "has shown a powerful upward trend since the start of the year," the economy ministry in Berlin said in a statement.
"A favourable business environment and positive trends in industrial orders suggest the good situation will continue."
Already on Friday, data showed a jump in industrial orders on the back of strong export demand.
Following a summer lull, "hard" economic data in Germany were back in line with business, consumer and investor confidence indicators that continue to point to further growth, said ING Diba bank analyst, Carsten Brzeski.
"The German economy is powering ahead," he said, arguing that drawn-out coalition talks in Berlin after last month's general election should be "no obstacle to strong growth".
AFP
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Explosions in Iran, US media reports Israeli strikes
US veto sinks Palestinian UN membership bid in Security Council
Pro-China local leader ousted in Solomon Islands election
Japan‘s March inflation slows to 2.6%, eyes on BOJ move
S&P downgrades Israel rating on heightened geopolitical risk
‘We have our jury’: panel selected for Trump criminal trial