German industrial production slumps in August

German industrial production slumped in August, amid a sharp decline in the output of capital goods.

According to the country’s economics ministry, industrial production, adjusted for seasonal swings and calendar effects, declined 1.2% month-on-month in August, down from an upwardly revised 1.2% gain in July and short of the 0.2% climb analysts had expected.

On a year-on-year basis, industrial production increased to 2.3% from an upwardly revised 0.8% gain in July, although it fell short of the 3.3% consensus reading.

However, the ministry said it expects the trend in the industry to remain “moderately positive”, adding the sluggish performance was attributable to the late summer vacation.

The report adds to the woes in the Eurozone’s largest economy, after data released on Tuesday showed manufacturing orders tumbled in both July and August due to declining demand from outside the Eurozone.