German Industrial Production Rose Less Than Expected in September on Covid-19 Fears

Data on Friday showed that German industrial production rose less than expected in September as the Coronavirus crisis curbed activity, in new evidence that the recovery from the pandemic shock is slowing down in Europe’s largest economy.

Figures released by the Federal Statistics Office showed that industrial production increased 1.6% on a monthly basis. A Reuters poll expected a 2.7% increase.

“The Coronavirus crisis has dominated developments in the manufacturing sector for several months now,” the statistics office said in a statement.

The economy grew at a record pace of 8.2% in Q3 thanks to higher consumer spending and exports, but a second severe wave of Covid-19 and partial lockdown measures clouded expectations for the fourth quarter and beyond.

The IFO Economic Institute said today that production expectations for the German industrial sector have weakened somewhat for the coming months, adding that the effects of lockdown measures are unclear.

Other, more recent German data indicates that the recovery has dissipated.

Industrial orders grew less than expected in September, as euro-zone orders fell, data showed on Thursday.

Business confidence also fell for the first time in six months in October due to concerns about rising virus infection rates.