Industrial Production in Germany showed an unexpected decline in September, the official data showed on Friday, suggesting that the recovery in the manufacturing sector is dwindling.
Eurozone’s economic powerhouse’s industrial output drops by 1.1% MoM, the federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects, vs. a 1.0% rise expected and -4.0% last.
On an annualized basis, the German industrial production fell by 1.0% in September versus -8.0% expected and a 1.7% growth registered in August.
FX implications
The shared currency is picking up some strength despite the mixed German industrial figures.
At the time of writing, EUR/USD is trading at 1.1558, up 0.06% on the day, awaiting the US NFP data.
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).