World, As Seen from Trinity Street, Dublin, Ireland

Dead cat bounce ‘growth’ registered at German industry

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The production of German industry increased by 0.3 percent in August compared to the previous month. The German Federal Statistical Office reported this. This put an end to two months with declines in production.

Economists counted on an unchanged production on average. In July, industrial production in Germany fell by a revised 0.4 percent.

On an annual basis, production in German industry decreased by 4 percent in August, after a decrease of 4.2 percent in the previous month.

Further weakness expected

Monday came a figure on the German factory orders. They showed a decrease of 0.6 percent on a monthly basis in August. German industry is struggling with global trade tensions, economic slowdown and uncertainty surrounding the Brexit.

ING economist Peter Vanden Houte said that the bleeding in German industry has stopped for a while. According to him, it is too early to speak of a trend break. Further weakness is expected. The economist says that support for the German economy will have to come primarily through fiscal stimulation from the government.

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World, As Seen from Trinity Street, Dublin, Ireland

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