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.