Germany’s industrial production growth exceeds expectations in August

Germany’s industrial production grew a seasonally adjusted 2.5 percent in sequential terms in August, exceeding the consensus expectations of 0.8 percent rise, according to federal statistics office, Destatis. This is the biggest rise in Germany’s industrial production since January. This is an improvement from its steepest decline in 23 months in July. The rise hints that the industry sector will contribute positively to the economic growth in the third quarter.

In July, industrial production had dropped 1.5 percent in July. August data is the highest month increase since January, when production had expanded 2.8 percent.

Production in industry, excluding energy and construction, grew 3.3 percent in August 2016. Within industry, the capital goods production rose 4.7 percent, whereas the production of consumer goods rose 3.3 percent, stated Destatis. Intermediate goods production rose 1.6 percent, whereas production of energy rose 1.1 percent in August. Only construction sector recorded a fall in the month. Production in construction fell 1.2 percent in August.