German Industrial Production drops sharply by 4% MoM in August

Industrial Production in Germany showed a bigger-than-expected drop in August, the official data showed on Thursday, suggesting that the recovery in the manufacturing sector losing momentum.

Eurozone’s economic powerhouse’s industrial output drops sharply by 4% MoM, the federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects, vs. a 0.4% drop expected and 1% last.

On an annualized basis, the German industrial production rose by a mere 1.7% in August versus 11.4% expected and a 6% growth reported in July.

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About German Industrial Production

The Industrial Production released by the Statistisches Bundesamt Deutschland measures outputs of the German factories and mines. Changes in industrial production are widely followed as a major indicator of strength in the manufacturing sector. A high reading is seen as positive (or bullish) for the EUR, whereas a low reading is seen as negative (or bearish).