German industrial production falls less than expected in October

German industrial production fell less than expected in October, according to figures released on Wednesday by Destatis.

Output dipped by 0.1% on the month following a 1.1% decline in September, and versus consensus expectations for a 0.6% drop. On the year, production was flat in October following a 3.1% increase the month before.

Production in industry excluding energy and construction fell 0.4% in seasonally and calendar-adjusted terms, compared with the previous month.

Within industry, the production of capital goods rose by 1.4%. The production of consumer goods fell by 1.9% and of intermediate goods by 1.8%.

Outside industry, energy production was down by 7.6%, while production in construction was 4.2% higher than in the previous month.

Franziska Palmas, senior Europe economist at Capital Economics, said: "German industrial production once again held up better than expected in October. But this resilience was driven partly by a recovery in construction which tends to be volatile.

"We expect high energy costs, rising interest rates and cooling demand to cause industrial output to fall further in the coming months, albeit less sharply than we previously anticipated."