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German factory production stabilises after rough summer

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Industrial production in Germany saw a slight boost in October after a strong rise the previous month, according to data released on Monday, pointing to a stabilisation of the sector.

[BERLIN] Industrial production in Germany saw a slight boost in October after a strong rise the previous month, according to data released on Monday, pointing to a stabilisation of the sector.

Industrial output climbed 0.2 per cent in October compared with the previous month, after a 1.1 per cent increase in September, the federal statistics office said in a statement.

That rebound had come after a weak phase during the summer months.

Factory orders, a key measure of demand for German-made goods both at home and abroad, had also risen strongly in October, according to data released on Friday.

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Industrial orders rose by 2.5 per cent in October compared with the previous month, the economy ministry said in a statement.

In September, German factory orders had already jumped by 1.1 per cent.

The economy ministry welcomed Monday's data as evidence that industrial production in Europe's top economy "is stabilising".

"After a moment of weakness this summer, not only in industry but also in construction, we've been able to put the worst behind us," it said in a statement, forecasting a "positive" fourth quarter.

Unicredit analyst Andreas Rees agreed, calling the data "encouraging in a sense that it flags stabilisation".

He said he maintained his forecast of a 0.1-per cent rise in industrial production in the fourth quarter "before resuming momentum from the first quarter 2015 onwards".

However Ralph Solveen of Commerzbank was more cautious.

"October output was... slightly higher than the average of the third quarter, but the downtrend in place since spring has not yet changed," he said.

"However, the recent positive development in order intake gives hope that this will soon change."

AFP

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