The production of German industry fell by 1.7 percent in October. The German Federal Statistical Office reported this. This is a considerably lower figure than expected on average.
Economists expected on average an increase in production of 0.1 percent. Industrial production in Germany fell by 0.6 percent in September.
The industry in Europe’s largest economy faces various problems. On the one hand, trade tensions are bothering export-oriented Germans. In addition, global economic growth is slowing down and the country’s car industry is facing a faltering switch to electric and automated driving.
The call for fiscal measures to stimulate the economy, such as increased government spending or tax cuts, is becoming stronger in Germany. So far, the German government has not responded to this because the country’s economy would not be in crisis.
ING economist Carsten Brzeski sees few indications of improvement in German industry in the coming months. Order books are declining, while companies with high company stocks remain stuck.
