German industrial production, which measures output of factories and mines, declined 1.2 percent on a monthly basis in October, widely missing a consensus figure of 0.8 percent growth, after a decline of 0.7 percent in September, raising concerns that recovery in the euro zone’s largest economy remains fragile.
On a yearly basis, industrial production grew 1 percent in October, compared to a 0.6 percent growth in the previous month, data released on Monday by Destatis, Germany’s federal statistical office showed.
“October’s German industrial production data suggest that the country’s main growth engine has not just stalled, but gone into reverse,” Jonathan Loynes, chief European economist at Capital Economics, said in a note. “Having expanded by almost 4% in the first half of the year, the level of production has fallen by 1.4% since June.”
Loynes said part of October’s decline came in the “erratic energy and construction components,” while “capital goods production also dropped sharply for the second month running, boding ill for the prospects of an investment recovery. Consumer goods production also remained weak.”