Sharp September dip dents German industry hopes for ending year on strong note
Berlin — German industrial production fell at its fastest rate in more than two years in September while the trade surplus shrank, data showed, denting expectations of a strong end to the year for Europe’s biggest economy. Industrial output dropped a bigger-than-expected 1.8% on the month, Economy Ministry figures showed on Tuesday. That was the biggest drop since August 2014. For the third quarter, output edged up 0.3% from the second, driven by an 0.9% increase in construction. The ministry said high order levels in construction and improved sentiment indicators "point to a certain revival in the manufacturing sector in coming months". Also on Tuesday, Germany’s ZDB construction association raised its sales forecast for 2016 due to a real estate building boom and higher state spending on infrastructure. Bankhaus Lampe analyst Alexander Krueger said September’s industrial output weakness was accentuated by August’s unusually strong rebound, which was revised up to an increase of 3%...
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