Carsten Brzeski, chief economist at ING, points out that Germany’s industrial production dropped by 0.5% MoM in October, from a 0.1% MoM drop in September, while it was up by 1.6% on a yearly basis.
“After two small monthly increases, the October drop shows that German industry is treading water. The drop in industrial production was mainly driven by shrinking production of consumer goods.”
“The industrial slump over the summer months, mainly driven by production delays in the automotive industry, has once again given rise to concerns about the strength of the entire German economy.”
“Any rebound in German industry will not follow a straight line but will be wobbly. To paraphrase Lady Gaga and Bradley Cooper: even if the times are no longer extremely good, the German economy should be longing for some structural change to improve long-term growth prospects before it starts fearing itself. The economy is not so far from the shallows any more.”
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