Industrial Production in Germany dropped more than expected in August, the official data showed on Friday, suggesting that the manufacturing sector activity has lost momentum.
Eurozone’s economic powerhouse’s industrial output fell by 0.8% MoM, the federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects, vs. a -0.5% expected and -0.3% last.
On an annualized basis, German industrial production increased by 2.1% in August versus a -1.1% drop booked previously.
FX implications
The shared currency remains unperturbed by the mixed German industrial figures.
At the time of writing, EUR/USD is trading around 0.9800, modestly flat on the day.
About German Industrial Production
The Industrial Production released by the Statistisches Bundesamt Deutschland measures the outputs of 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).