German Industrial Output Slumps on China Hit

Industrial output in German declined for the second straight month in September, adding to ample evidence that weak demand from China, Russia and other developing economies is damaging the country’s economy.

A day after the economics ministry announced steep declines in manufacturing orders, it said Friday that industrial production, adjusted for seasonal swings and calendar effects, dropped 1.1% in September from the previous month. The volume of total industrial output was the lowest in almost one year, at par with last October’s level. By comparison, economists polled by The Wall Street Journal had forecast a 0.5% monthly increase in output.

“Businesses have trimmed production somewhat in light of the restrained orders intake in the third quarter,” the ministry said. German manufacturing orders in the third quarter were down 2.8% from the previous quarter as orders from outside the eurozone slumped 8.6%, the ministry had disclosed Thursday.

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.
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