German Industrial Production Rebounds
(RTTNews) - Germany's industrial production rebounded in August despite summer heatwave and geopolitical tensions, official data showed Wednesday.
Industrial output expanded 2.0 percent on a monthly basis, in contrast to the 1.2 percent decrease in July, Destatis said. Production was expected to grow 0.5 percent. On a yearly basis, industrial production grew 2.3 percent, reversing July's 1.8 percent fall.
The growth was driven by the 9.3 percent increase in construction output. On the other hand, production in the automotive industry fell 5.4 percent. At the same time, energy production was down 0.4 percent.
Excluding energy and construction, industrial production rose 0.6 percent, data showed.
Production of capital goods and consumer goods climbed 1.2 percent and 0.6 percent, respectively. Meanwhile, intermediate goods output dropped 0.2 percent.
Data suggests that the economic impact of the heatwave and drought in August was less severe than feared, ING economist Carsten Brzeski said.
In order to fundamentally bring the German economy back on a sustainable growth path, the economy still needs more reforms that improve international competitiveness, a clear plan for affordable energy and more direct incentives, the economist added.
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