German industrial production likely to have strengthened in October

Germany’s industrial production is expected to have strengthened further in October after the weaker than anticipated outcome noted in September. According to a Societe Generale research report, the German industrial output is likely to have expanded 0.8 percent sequentially after falling 1.8 percent in sequential terms in September.

Manufacturing surveys have stayed positive that should suggest certain additional strengthening in production; however, stocks have also been building up faster than new orders so certain moderation is expected towards the end of 2016.

Given these positive surveys, the economic growth in fourth quarter is tracking quite high and the hard data is likely to affirm this positive trend. In all, the German economy continues to stay strong, based on solid domestic economic fundamentals, stated Societe Generale.