German Aug industry output unexpectedly falls as China weakens

Zurich

GERMAN industrial production unexpectedly declined in August, signalling that Europe's largest economy is feeling the effects of weaker emerging market demand.

Output, adjusted for seasonal swings and inflation, fell 1.2 per cent in August after a revised increase of 1.2 per cent in July, data from the Economy Ministry in Berlin showed on Wednesday. The reading, which tends to be volatile, compares with a median estimate for a 0.2 per cent gain in a Bloomberg survey of economists. Industrial production advanced 2.3 per cent from a year earlier.