German industry growth delayed

The German industry growth delayed due to the increased concerns about the economic performance of the country. The industrial production shrank more than expected in August. Industry in European largest economy has given way to a seasonally adjusted 4 per cent in the eighth month of the year according to the latest report from the Federal Statistical Office (Destatis). Month earlier had reported growth of 1.6%. Analysts had forecast a decline on a monthly basis by only 1.5%.

The decline in production data in August proved to be the sharpest since January 2009, when Destatis reported retreat of 6.9% on a monthly basis. Measured on an annual basis, industrial production declined by 2.8% in August after rising 2.7% in the previous month. The market was staked to decline to 0.5%.

Earlier this week, industrial orders in Germany gave more than expected in August, taking into account a decline of 5.7% – also the worst since 2009. The analysts had expected a decline of only 2.5% after a revised steady growth of 4.9% in July. On an annual basis, the measure fell 1.3 percent after rising 5.9% in July. Market forecasts were for growth of 2.6%. Investors closely monitor economic performance in Germany amid signs that the economic engine of the Eurozone loses steam.

Later this week Destatis will release data on the trade balance, analysts foresee a decline in the current account surplus in August. The forecast were for decline in exports by 4% and imports growing by 0.9%.