Germany’s dominant industrial sector proved more resilient than expected in September, official data showed on Friday, despite war in the Middle East pushing up energy prices and disrupting supply chains.
Source: Sharecast
According to Destatis, the Federal Statistical Office, production in industry in the European Union’s biggest economy rose 0.7% month-on-month. That was a slower pace of growth than the downwardly-revised 1% reported in August, but notably ahead of consensus for 0%.
Year-on-year, industrial production grew by 0.4%.
Driving the growth was Germany’s dominant automotive industry, which rebounded 17.1%. In the previous two months, production had been at a low level in part because of production changeovers and factory holidays. The pharmaceutical industry also recovered following a weaker couple of months, rising by 8%.
Both helped offset falls elsewhere, including a 2.6% decline in the construction industry and 6.5% slump in the manufacture of machinery and equipment.
Carsten Brzeski, global head of macro at ING, said: "Today’s numbers illustrate that, at least up to now, supply chain disruptions on the back of the war in the Middle East and low water levels this summer have done less harm to German industry than feared.
"However, past success is no guarantee of future success. The fact that, compared with the second quarter, industrial production actually dropped in the third quarter, strengthens this warning."
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