German Industrial Output Rises in Sign of Economic Strength

EghtesadOnline: German industrial production rose in November, adding to signs that Europe’s largest economy saw a strong finish to the end of last year.

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09 January 2017

Output, adjusted for seasonal swings, gained 0.4 percent from October, when it advanced a revised 0.5 percent, the Economy Ministry in Berlin said on Monday. The reading, which is typically volatile, compares with a median estimate for a 0.6 percent increase in a Bloomberg survey. A separate report from the Federal Statistics Office showed exports increased 3.9 percent in November, with imports up 3.5 percent, Bloomberg reported.

The reports follow a string of data published last week that underlined Germany’s economic strength heading into a year that will bear challenges from national elections in autumn to risks from Britain’s exit negotiations with the European Union. A survey of purchasing managers suggested manufacturing and services expanded at the fastest pace in a year in December, unemployment continued to decline and the inflation rate posted a record increase to 1.7 percent.

“Germany is doing well -- the economy is growing fast enough to bolster employment and slow enough to avoid inflationary tensions,” said Andreas Scheuerle, an economist at Dekabank in Frankfurt. “If it wasn’t for the rest of the world, it would be in an optimal position.”

The euro was little changed after the report and traded at $1.0535 at 8:28 a.m. Frankfurt time.

Output was bolstered by a 1.5 percent surge in construction, according to the Economy Ministry. Manufacturing rose 0.4 percent in November from the previous month, while energy production fell 0.4 percent. Production was up 2.2 percent from a year earlier.

“In manufacturing and construction, production picked up noticeably after a weak summer half,” the ministry said in an e-mailed statement. “Orders in manufacturing and construction, as well as sentiment indicators in these sectors, promise solid output growth in the winter half.”