German output of capital goods jumps in October

Industrial production in Germany grew in October by 0.2% month-on-month, according to the Federal Office of Statistics.

That was less than the 0.8% rise which economists had pencilled in and followed a 1.1% drop over the month in September.

Total output excluding energy and construction increased by 0.7%, led by a 2.7% month-on-month jump in the production of capital goods, while that of intermediate and consumer goods declined by 1.1% and 0.1%, respectively.

Energy production fell at a 5.9% pace versus September 2015 - matching the largest decline since at least 1991 - while construction output gained 0.7%.

In comparison with year earlier levels total industrial production was flat (consensus: 0.5%), although September's print was revised higher to reveal an advance of 0.4%, higher than a preliminary estimate of 0.2%.

“The soft start to the quarter for the industrial sector, following the weak finish to Q3, means even a robust performance in November and December could leave output flat-to-down for Q4 as a whole. This limits the scope for GDP growth to strengthen relative to its Q3 reading of 0.3% quarter-on-quarter,” Dominic Bryant at BNP Paribas said in a research note sent to clients.