German industrial output drops by 4%
German industrial output has declined by 4% in August compared to the previous month, according to the German Ministry for Economic Affairs and Energy. The figures suggest that growth prospects for Germany are deteriorating.
While industrial output increased in July by 1.6%, it now faced a sharp decline, largely due to a 25.4% drop in vehicle production, industrial production shrink by 4.8%, investment goods fell by 8.8%.
The poor performance has also been affected by the timing of German school holidays in August, the German ministry for Economic Affairs said. However, the figures come as the IMF has cut growth forecasts for Germany to 1.5%, suggesting that the Eurozone’s biggest economy is losing steam.