Industrial production in Germany remains stable

The industrial production in Germany remains stable, reporting growth above expectations in August. The increase amounted to 2.5% on a monthly basis against expectations for growth of only 1%. In July, was reported a decline of 1.5%. So in all four of the eight months of the year for which data are available, industrial production rose. On an annual basis, industrial production in Germany increased by 1.9%, also well above forecasts for growth within 0.4% and above the results in July, when was registered decline of 1.3%.

“In August, production in industry, excluding energy and construction, is growing by 3.3%”, wrote the German statistical office Destatis. “The production of capital goods rose by 4.7%, while the consumer goods rose by 3.3%. The production of intermediate goods recorded a growth of 1.6%, energy increased by 1.1%, while construction decreased by 1.2%”, adds the statement of Destatis.

However, there are still concerns about the strength of European largest economy after the referendum Brexit referendum. The Association of German Chambers of Industry and Commerce stated that the postponement of negotiations for Brexit increase the uncertainty. Germany recorded a decline of exports by 10% in July, which was the biggest collapse since 2009. Expected growth of the economy slowed in the third quarter.

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