German industrial production rises less than expected in October

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

Industrial production was up 0.3% from September, when it dropped a revised 1.6%, missing expectations for a 0.8% increase.

Production in industry excluding energy and construction was up 0.1%, while the production of capital goods increased 0.5% and of consumer goods by 0.1%.

The production of intermediate goods and energy were both down 0.5%, while production in construction increased by 1.7%.

On the year, industrial production was 1.2% higher compared to an upwardly-revised 1.3% in September.

Pantheon Macroeconomics said: “A relatively subdued headline given the surging factory orders report yesterday, but we think next month’s report will be better. The headline was constrained by falling production of intermediate goods, and declining energy output, the latter likely due to warmer than usual weather. In addition, consumer and capital goods production rebounded only slightly from large falls in September.

“If yesterday’s capital goods orders surge is anything near correct, though, we should expect stronger growth next month. Overall, we continue to expect that manufacturing will lift GDP growth in Q4. Outside manufacturing, construction was a bright spot jumping 1.7% month-to-month, consistent with our expectation that capex in this sector also will lift total investment in Q4.”