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Leadership
Surprise decline in German industrial production
08.12.2009
German industrial production posted an unexpected decline during October, official figures have shown.
According to figures released by the Germany Economics Ministry, October industrial output fell by 1.8pc compared to the previous month.
The figures flew in the face of analysts, who had expected a modest rise of around 1pc in industrial production rates.
However, there was some positive to today’s news, with September’s industrial output raised to 3.1pc, up from a previous estimate of a 2.7pc rise.
October’s surprise fall in industrial production comes as a blow following two months in a row of rising production, which had boosted hopes that Germany, which exited recession in the second quarter of the year, could deliver stronger growth in the second half of 2009.
The figures also follow on from a surprise fall in German new factory orders announced yesterday - their first fall in eight months.
However, the German Economics Ministry was putting a brave face on the figures today, saying that the industrial production trend was “clearly upward” and that the industrial production recovery should continue in the fourth quarter, albeit with a “weakened dynamic”.
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