Industrial production in Germany showed a larger-than-expected drop in August, official data showed on Thursday, suggesting that the recovery in the manufacturing sector has lost momentum.
The industrial production of the economic powerhouse of the eurozone falls sharply 4% month-on-month, said the federal statistics authority Destatis in figures adjusted for seasonal and calendar effects, versus a 0.4% drop expected and 1% seen the previous month.
In annualized terms, German industrial production increased by just 1.7% in August, compared to 11.4% expected and the 6% growth registered in July.
About German industrial production
Industrial production published by the Statistisches Bundesamt Deutschland measures the production of German mines and factories. Changes in industrial production are closely followed by the market as an important indicator of the strength of the manufacturing sector. A reading higher than anticipated by experts is bullish for the euro, while a lower result is bearish.
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