Dow Jones Newswires: Germany industrial production declined slightly in October as high energy prices take toll

Daily Trade

Germany industrial production fell in October as high energy prices weighed on manufacturing output, adding to evidence of a slowdown in Europe’s industrial powerhouse at the beginning of the fourth quarter.

Industrial output–comprising production in manufacturing, energy and construction–fell by a marginal 0.1% in October after increasing by an upwardly revised 1.1% in September, according to data from the German statistics office Destatis published Wednesday.

The reading beats the 0.7% decline expected by economists in a poll by The Wall Street Journal.

Manufacturing output decreased 0.4% compared with the previous month, while energy production fell 7.6% and construction output climbed 4.2%, Destatis data showed.

Production at energy-intensive industrial branches fell by 3.6% in October, in a sign these sectors are scaling back production in view of high energy costs.

Germany’s manufacturing sector is struggling with sluggish orders in recent months due to weakening demand amid a global economic slowdown. Even as the threat of gas shortages in the industry has eased, high energy costs, elevated inflation and an uncertain economic outlook post headwinds to the sector, economists say.

Write to Xavier Fontdegloria at [email protected]

Articles You May Like

Strong Earnings Should Keep Stocks on a Winning Path
Trump’s broadside against wind industry threatens projects that could power millions of homes
The Fed’s job is not to boost the stock market. Here’s what it should be doing.
Trump says his administration will check Fort Knox ‘to make sure the gold is there’
Two New Reasons to Stay Bullish on AI Stocks