Germany’s industrial production dropped in October for the second straight month. Industrial output dropped markedly by 1.4 percent after a drop of 0.9 percent in September. The fall in October industrial production was mostly because of lower automobile production, which dropped almost 6 percent sequentially.
Following the subdued figures of the two earlier months, industrial production in October came in at 1.2 percent, below the average of the third quarter. But, it could be expected to rise again in the months ahead. Already available data of the German Association of the Automotive Industry imply that automotive sector production has rebounded considerably in November. Moreover, the trend calculated for production based on order intake in the earlier months continue to indicate upwards, noted Commerzbank in a research report. Overall, production is thus likely to rise in the fourth quarter as well, though slower than in the preceding quarters.
“This suggests that in Q4 the overall economy has also grown somewhat more slowly than in (the admittedly very strong) Q3. The upturn in Germany continues”, added Commerzbank.
At 13:00 GMT the FxWirePro's Hourly Strength Index of Euro was slightly bearish at -64.0597, while the FxWirePro's Hourly Strength Index of US Dollar was highly bullish at 121.426. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest