German industrial production fails to stage a convincing rebound in October

 
Chris Papadopoullos
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German industry makes up nearly a third of the economy (Source: Getty)

German industry struggled to rebound from two months of decline in October, according to official figures released today.

German industrial production, which makes up nearly a third of the German economy, rose 0.2 per cent compared with September, data from Destatis shows. However, it declined sharply over the last two months and has failed to grow compared with October last year.

“October’s unexpectedly-small rise in German industrial production was another sign that GDP growth in the Eurozone’s largest economy has passed its peak,” said Economist Jack Allen from Capital Economics.

The German economy expanded 0.3 per cent in three months to September.

However, there were some positives beneath the headline figure. Manufacturing expanded by 0.7 per cent on the month, with the main growth figure dragged down by steep drop in energy production. Some economists are more upbeat on the German economic outlook.

“Together with a decent turnaround in new orders and very promising survey indicators lately, we expect a solid end-of-year acceleration in economic growth,” said economist Tobias Ruhl from UniCredit Research.

“As we have said a couple of times before, the increase in domestic demand from within the Eurozone more than offsets the drag from emerging markets.”