Industrial output jumps in Germany in boost for economy

"German industrial production unexpectedly jumped in October, official data showed Monday, the latest sign that Europe's crisis-wracked top economy may be turning a corner. Factory output rose 1.8 percent month-on-month, according to preliminary data from federal statistics agency Destatis, after a 1.1 percent rise in September. The positive result, boosted by the construction and the machinery sectors, was far better than a 0.55 percent decline forecast by analysts surveyed by financial data firm FactSet."

"It was the first time since early 2024 that German industrial output had increased two months in a row, noted ING economist Carsten Brzeski. "The second consecutive monthly increase suggests that industrial production has finally reached a period of bottoming out," he said. But the economy ministry struck a more cautious tone, noting that domestic orders were strong but foreign demand remained weak. "Despite the predominantly positive production trend in September and October, no noticeable upturn in industrial activity is expected at the end of the year," it warned in a statement."

"According to Destatis, production in the construction sector rose 3.3 percent in October and in the manufacture of machinery and equipment, it was up 2.8 percent. But it dipped 1.3 percent in the crisis-hit auto sector. October's increase was the latest positive sign after industrial orders - an indicator of future business activity - jumped in the same month, driven by strong demand for defence goods as Germany rearms."

German industrial production rose 1.8 percent month-on-month in October, following a 1.1 percent increase in September. The rise was driven by gains in construction (up 3.3 percent) and machinery and equipment manufacturing (up 2.8 percent), while auto production fell 1.3 percent. The result outperformed analysts' forecast of a 0.55 percent decline. Industrial orders also jumped in October, boosted by strong demand for defence goods amid rearmament. Domestic orders are strong, but foreign demand remains weak. The government has increased public spending on defence and infrastructure and forecasts 0.2 percent GDP growth in 2025 with stronger growth expected in 2026.

Read at The Local Germany