According to the German Ministry for Economic Affairs, industrial production rose by 0.2% in October from the previous month. Meanwhile, experts forecasted a bigger increase of 0.8%.
At the same time, German industrial production on a year basis remained unchanged, while the analysts expected a 0.7% increase.
In September, industrial production of Germany climbed by 0.4% year-over-year from the unrevised level of 0.2%. Germany’s manufacturing and mining production rose by 0.7% in October, in line with construction growth. Consumer goods showed a decline of 0.1%, and production of capital goods jumped by 2.7%. Energy production slumped by 5.9%.
Even though German manufacturing production shrank in the third quarter, the GDP growth is prompted by considerable domestic demand in light of a record low unemployment rate and cheap fuel. Moreover, the European Central Bank announced additional stimulus last week which would support the German economy.
According to Bundesbank, Germany’s GDP is expected to grow by 1.7% this year and 1.8% next year. Estimates from The European Commission suggest that the economy will expand by 1.7% and 1.9%, respectively. The Organisation for Economic Co-operation and Development anticipates Germany’s GDP growth at 1.5% in 2015 and 1.8% next year.
