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German industrial output surges, signalling a healthy 2018

Reuters  |  BERLIN 

By Joseph and Michael Nienaber

(Reuters) - Industrial production and from rose more than expected in November, prompting the to raise its estimate of growth for 2017 and signalling that its expansion would carry on this year.

Industrial jumped 3.4 percent for the month, the biggest increase since September 2009, the reported on Tuesday, overshooting a 1.8 percent forecast in a poll.

Seasonally adjusted for November rose 4.1 percent on the month and domestic demand pushed imports up 2.3 percent. Both figures beat forecasts, and they widened the trade surplus to 22.3 billion euros ($26.61 billion) from 19.9 billion euros in October.

The figures and buoyant business sentiments suggest "that the German ended 2017 with a bang after the third quarter's impressive 0.8 percent expansion," of wrote in a note.

Soon after the data, the raised its 2017 growth forecast to 2.2 percent from a previous estimate of 2.0 percent.

"The is stable," Deputy Minister said. "And we assume that it will continue at about the same level."


The has expanded every year for the past eight years, and it has continued to surge even though has failed to form a new coalition after September's national election, creating a political deadlock.

The rise in November's confirmed economists' assumption that a 1.2 percent drop in October was caused by limited factors, namely two public holidays.

A breakdown of the data showed the main drivers were capital and consumer goods spending as well as construction.

The Statistics Office will publish on Thursday full-year gross domestic product figures for 2017, which are forecast to show 2.4 percent growth. Some analysts expect it to do better.

"German GDP looks set to have risen by slightly more than our above-consensus forecast of 2.5 percent in 2017 and we expect a similarly strong pace of growth this year," McKeown said.

($1 = 0.8379 euros)

(Additional reporting by Rene Wagner and Gernot Heller, writing by Joseph Nasr,; editing by Larry King)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, January 09 2018. 19:44 IST