Germany’s industrial production seems to have rebounded strongly in August

Germany’s industrial production is likely to have recovered strongly in August after posting a weak report in the previous month and a muted growth in the second quarter. According to a Societe Generale research note, industrial production in euro area’s largest economy is expected to have grown 1 percent sequentially in August.

Even though survey data have been weak in the summer, the manufacturing PMI has bolstered that should suggest a rebounding contribution from industrial output to German economic growth in the third quarter of this year.

In a similar manner, construction is expected to have rebounded in the third quarter after recorded disappointing growth in the previous quarter. The recovery is possibly driven by solid housing demand and low interest rates. In all, the German economy is likely to remain resilient given the solid domestic fundamentals, noted Societe Generale.