German industrial output grows on rising car sales
German industrial output posted larger-than-expected figures driven by surging car sales in October. This development is an indication that the export-oriented manufacturing sector sent Europe’s largest economy off to a hot start in the final quarter of 2020.
German industrial output soared 3.2% on the month after an upwardly revised increase of 2.3% in the previous month, according to the figures by the Federal Statistics Office reported on Monday. This upbeat record outplayed a Reuters forecast of a 1.6% growth and was the biggest lift since June.
COVID-19-induced restrictions that forced closed huge portions of the services sector from Nov. 2 are dimming the economic outlook which is anticipated to remain dull or even contract in the year’s final quarter.
However, a decline in the country’s 4th quarter GDP is less likely to be seen as the manufacturing sector keeps growing.