Industrial production punches forecasts for October

Published:

On: Dec 2020

According to the official information, the industrial production in the biggest economy of Europe, Germany was gained to almost 3.2 percent in October as compared with the last month. It was the 2nd set of amounts for October to beat expectations of the economists. The 6th successive monthly gain in the industrial production was prompted in portion by a high rise in the auto sector, said by Economy Ministry.

It followed increments of almost 0.5 percent in August as well as 2.3 percent in September. Therefore, the economists had anticipated a 1.6 percent rise. Recently, official statistics showed that the factory orders gained to 2.9 percent in October, which had been double figure what economists had estimated, because demand for investment goods including factory machinery gained.

The figures indicate promising beginning to the 4th quarter. However, massive gains in coronavirus pandemic cases led to partial lockdowns in Germany and other zones of Europe in the month of November. In Germany, bars, sports, restaurants and other leisure facilities have been halted since 2nd of November, while schools as well as nonessential shops have not closed. Those measures which are taken in the 1st phase of the COVID-19 epidemic, are anticipated to continue until at least 10th of January 2021.

A senior economist said that the industrial production should be the bright mark of the German economy in the 4th quarter but the offered the negative impact from the recent shutdown measures on services, consumption as well as sentiment, this positive industrial strength should in our perspective not be enough to decline a double dip for the economy of Germany.

In Q3, the German economy expanded by almost 8.5 % as limitations were eased and shops as well as factories restarted. But a drop in economic output may be uncleared for the previous 3 months of 2020. The economic downturn caused by the COVID-19 pandemic is more or less all regarding to the service sector.