Home Forex Market News German industrial production shocks with steepest fall since 2009

German industrial production shocks with steepest fall since 2009

Strength of German economy questioned as industrial output slumps by 4pc in August, the biggest decline in over five years and significantly worse than expected

The strength of Europe's economic powerhouse has been called into question

German industrial production fell by 4pc in August, the biggest drop since 2009, fuelling concern about the country’s economic health.

The fall, reported by Germany’s Economy Ministry, was significantly worse than economic estimates of a decline of around 1.5pc. Last month’s 1.9pc gain was also revised down to 1.6pc this morning.

“Industrial production is currently going through a weak phase …but the current decline is exacerbated by holiday effects,” the ministry said in a statement.

“All in all, one should expect weak production for the third quarter as a whole.”

The German economy, and particularly its factories, have been buffeted by ongoing tensions over Ukraine, and tit-for-tat sanctions between Russia and the eurozone.

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