FOREX TradingCharts.com

Financial News: Surprise Fall In German Industrial Production Worsens Rece

Surprise Fall In German Industrial Production Worsens Recession Fears

01/08/2019 - 08:33:00 (RTTNews)

(RTTNews) - Germany's industrial production unexpectedly decreased for a third straight month in November, amid a sharp fall in consumer goods and energy output, worsening fears of a technical recession in the biggest euro area economy.

Overall industrial production fell a calendar and seasonally adjusted 1.9 percent from October, when it decreased 0.8 percent, revised from 0.5 percent, preliminary data from the Federal Statistical Office showed on Tuesday.

Economists had expected a 0.3 percent increase. The latest decline was the biggest since a 2.3 percent slump in July.

Industrial production decreased 1.8 percent and construction output dropped 1.7 percent.

Manufacture of consumer goods fell 4.1 percent. Capital goods output fell 1.8 percent and production of intermediate goods shrunk 1 percent.

Energy output decreased 3.1 percent and construction production fell 1.7 percent.

Excluding energy and construction, industrial production decreased 1.8 percent from the previous month.

On a year-on-year basis, industrial production fell 4.7 percent in November after a 0.5 percent gain in October. Economists were looking for a 0.8 percent decline.

Production slowed in the key sectors and the problems related to the implementation of the WLTP emission tests continued in the automobile industry, the economy ministry said.

Data released on Monday showed that manufacturing new orders decreased for the first time in four months in November. However, higher order backlog in the manufacturing sector suggests that the industrial economy is gathering some momentum, albeit with subdued momentum, the economy ministry said.

Automobile industry logged a noticeable gain of 4.5 percent in orders in November.

The statistical agency is set to release the trade data for November on Wednesday.

"At face value, today's industrial production data has clearly increased the risk of a technical recession in Germany in the second half of 2018," ING economist Carsten Brzeski said.

"Watch out for tomorrow's trade data. Another disappointment, combined with the high inventory build-up in 2Q and 3Q, would clearly increase the likelihood of a technical recession."

The German economy shrunk for the first time since early 2015 in the third quarter and at the fastest pace in nearly six years, mainly due to weak exports and car sales. GDP fell 0.2 percent quarterly, marking the worst decline since the first quarter of 2013.

Another contraction in the fourth quarter would mean the economy has slipped into a technical recession, which is two consecutive quarters of negative growth.

That said, a technical recession should be nothing to be too worried about given a strong labor market, favorable financing conditions and signs of a pick up in the automobile industry, Brzeski said.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Estonia Producer Price Inflation Unchanged (01 hr(s), 02 min(s), 06 sec(s) ago)
(RTTNews) - Estonia's producer price inflation steady in December, data from Statistics Estoni ...Full Story»

Germany Producer Price Inflation At 7-Month Low (01 hr(s), 40 min(s), 06 sec(s) ago)
(RTTNews) - Germany's producer price inflation eased to a seven-month low in December, figures ...Full Story»

China 2018 GDP Growth At 28-year Low (04 hr(s), 18 min(s), 06 sec(s) ago)
(RTTNews) - China's economy expanded at the weakest pace in nearly three decades in 2018 as th ...Full Story»

China GDP Expands 1.5% On Quarter In Q4 (34 min(s), 54 sec(s) ago)
(RTTNews) - China's gross domestic product climbed a seasonally adjusted 1.5 percent on quarte ...Full Story»

China GDP Data On Tap For Monday (19 min(s), 54 sec(s) ago)
(RTTNews) - China is scheduled to release a raft of data on Monday, setting the pace for an otherw ...Full Story»

U.S. Consumer Sentiment Plunges To Lowest Level Since Trump's Election (36 min(s), 54 sec(s) ago)
(RTTNews) - Consumer sentiment in the U.S. has seen a substantial deterioration in the month of Ja ...Full Story»

Portugal Producer Price Inflation Slows For Second Month (24 min(s), 54 sec(s) ago)
(RTTNews) - Portugal producer price inflation slowed for a second straight month in December, figu ...Full Story»

Eurozone House Price Growth Retains Momentum In Q3 (06 min(s), 54 sec(s) ago)
(RTTNews) - Eurozone house prices grew at a robust rate in the third quarter, albeit slightly slow ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Estonia Producer Price Inflation Unchanged

01/21/2019 - 04:37 AM (RTTNews)
(RTTNews) - Estonia's producer price inflation steady in December, data from Statistics Estoni ...Full Story>>

Germany Producer Price Inflation At 7-Month Low

01/21/2019 - 03:59 AM (RTTNews)
(RTTNews) - Germany's producer price inflation eased to a seven-month low in December, figures ...Full Story>>

China 2018 GDP Growth At 28-year Low

01/21/2019 - 01:21 AM (RTTNews)
(RTTNews) - China's economy expanded at the weakest pace in nearly three decades in 2018 as th ...Full Story>>

China GDP Expands 1.5% On Quarter In Q4

01/20/2019 - 21:14 PM (RTTNews)
(RTTNews) - China's gross domestic product climbed a seasonally adjusted 1.5 percent on quarte ...Full Story>>

China GDP Data On Tap For Monday

01/20/2019 - 16:59 PM (RTTNews)
(RTTNews) - China is scheduled to release a raft of data on Monday, setting the pace for an otherw ...Full Story>>
These pages, and all content ©TradingCharts.com Inc and other copyright holders. Permission is not granted to redistribute charts, data, news or other information found on this site, in any manner. Although it is believed that information provided is accurate, TradingCharts will not accept liability for any loss or damage that may arise from use of the content, inability to access the website, or delay or failure of receive of any information provided through this site.