German Industrial Production drops sharply by 4% MoM in August
|Industrial Production in Germany showed a bigger-than-expected drop in August, the official data showed on Thursday, suggesting that the recovery in the manufacturing sector losing momentum.
Eurozone’s economic powerhouse’s industrial output drops sharply by 4% MoM, the federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects, vs. a 0.4% drop expected and 1% last.
On an annualized basis, the German industrial production rose by a mere 1.7% in August versus 11.4% expected and a 6% growth reported in July.
FX implications
The shared currency shows little reaction to the downbeat German industrial figures.
At the time of writing, EUR/USD is trading at 1.1552, almost unchanged on the day, wavering in an extremely tight range ahead of the US debt ceiling extension vote.
About German Industrial Production
The Industrial Production released by the Statistisches Bundesamt Deutschland measures outputs of the German factories and mines. Changes in industrial production are widely followed as a major indicator of strength in the manufacturing sector. A high reading is seen as positive (or bullish) for the EUR, whereas a low reading is seen as negative (or bearish).
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