German industrial production suffers steep decline in August

 
Chris Papadopoullos
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The news followed weak factory order data yesterday (Source: Getty)

Industrial production in Germany, the Eurozone’s biggest economy, dropped at its fastest pace for a year in August, according to figures released this morning.

Total production, which includes construction, manufacturing and mining, dipped 1.2 per cent in August compared with July, German statistical office Destatis said.

The production of capital goods fell 2.1 per cent while consumer goods dipped 0.4 per cent. Construction and energy output also posted declines.

The weak production figures followed the release of a data yesterday showing factory orders decreasing 2.2 per cent in July compared with June

“German industry is still struggling to gain momentum. Yesterday’s drop in new orders already signalled a note of caution,” said economist Carsten Brzeski from ING.

“Today’s weak industrial production data will again give rise to speculation that the German economy is suffering from the Chinese slowdown. In our view, however, there is no need to panic,” he said.

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