Industrial production in Germany unexpectedly fell by 0.4 percent in October compared to the previous month. The German Statistical Office informed about it today. This is the fifth monthly decline in a row. In September, according to revised data, industrial production fell by 1.3 percent month-on-month.
German industrial production falls
Analysts in a Reuters poll had expected production growth, which they estimated on average at 0.2 percent. The October decrease was mainly caused by a 6.3 percent drop in production in engineering. But production also fell in other sectors, including construction.
“The misery of German industrial production continues,” said economist Thomas Gitzel of VP Bank Group. According to him, production is now mercilessly affected by the low volume of orders in the last two years.
High energy prices
Wednesday’s statistics showed that the volume of orders in German industry also unexpectedly decreased in October compared to the previous month. The decrease was 3.7 percent.
Germany’s industrial sector is suffering from a combination of high energy prices, weak foreign demand and less favorable financing conditions, said economist Ralph Solveen of Commerzbank. “Today’s data is in line with expectations that the German economy will continue to contract in the fourth quarter,” he added.