Ger­man in­dus­trial pro­duc­tion dips

The Jakarta Post - - INTERNATIONAL -

FRANK­FURT: Ger­man in­dus­trial pro­duc­tion un­ex­pect­edly slipped for the sec­ond month in a row in Oc­to­ber, of­fi­cial data showed Thurs­day, but the rare blip is un­likely to throw Europe’s hum­ming top econ­omy off course.

Out­put from in­dus­trial firms fell 1.4 per­cent month-on-month, fed­eral sta­tis­tics of­fice Des­tatis said, whereas an­a­lysts had pre­dicted a rise of 0.8 per­cent.

The drop how­ever was mainly down to pub­lic hol­i­days and ex­tended week­ends in Oc­to­ber, the econ­omy min­istry said in a state­ment, adding that it ex­pected the pos­i­tive growth mo­men­tum to con­tinue in Ger­many.

“All soft and hard in­di­ca­tors ac­tu­ally point to a strong surge in in­dus­trial pro­duc­tion in Novem­ber,” agreed econ­o­mist Carsten Brzeski of ING Diba bank.

“There is no rea­son to get wor­ried,” he added. “Sim­ply keep your seat belts fas­tened. The fast ride of the Ger­man econ­omy is set to con­tinue.”

The Oc­to­ber drop was led by falls in the man­u­fac­tur­ing and con­struc­tion sec­tors, while en­ergy pro­duc­tion was up 5.1 per­cent.

Des­tatis also cor­rected its Septem­ber fig­ure from an ear­lier an­nounced month-on-month fall of 1.6 per­cent to a smaller 0.9 per­cent slide.

The Ger­man econ­omy has been fir­ing on all cylin­ders in re­cent months, pow­ered by strong do­mes­tic and for­eign de­mand.

The good times look set to con­tinue with data re­leased on Wed­nes­day show­ing a sur­prise jump in in­dus­trial or­ders, and sur­veys sug­gest­ing busi­ness con­fi­dence is at an all-time high.

“The irony of to­day’s drop in in­dus­trial pro­duc­tion is that it prob­a­bly re­flects the strength and not the weak­ness of the Ger­man econ­omy,” said Brzeski.

“Ap­par­ently it is go­ing so well that peo­ple and com­pa­nies can sim­ply af­ford to take some time off.” — Agence France-Presse

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