BERLIN: Falling industrial output exports suggest Germany current economic still weak in 2015. Coming hot on the heels of aunexpectedly sharp drop in factory orders earlier this week the economy ministry calculated in regular data that German industrial production shed 0.1 percent in November pulled down by declining activity in the energy and construction sectors.
At the same time the federal statistics office Destatis estimated that German exports fell by 2.1 percent in November causing the country’s trade surplus to contract sharply.
November’s hard data indicate that Germany’s phase of economic weakness is not yet over after meagre growth of 0.1 percent in the third quarter’ said Natixis economist Johannes Gareis.Nevertheless at the same time a lot of the October data had been revised upwards taking the sting out of the disappointing November numbers analysts said.Early indicators such as order intake and the Ifo business climate index create hope that the German economy will soon pick up at a stronger rate again’ said Commerzbank economist Marco WagnerBayernLB economist Stefan Kipar agreed.
Taking the October and November data together ‘the indications are that gross domestic product (GDP) growth was positive again in the fourth quarter’ he said.Retail sales were up strongly and higher employment and rising wages ‘provide enough ammunition to keep private consumer expenditures going’ he said.
