More bleak numbers. German industry output unexpectedly falls even ahed of VW crisis.

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  Holger Zschaepitz @Schuldensuehner

  More bleak numbers. German industry output unexpectedly falls even ahed of VW crisis. http://bloom.bg/1Za2hY4 

  3:43 PM - 7 Oct 2015 · Berlin, Germany, Deutschland

   
   
   
  August production drops 1.2% versus estimate for 0.2% increase
• Economy Ministry says output damped by school-holiday timing

German industrial production unexpectedly declined in August, signaling that Europe’s largest economy is feeling the effects of weaker emerging-market demand.
Output, adjusted for seasonal swings and inflation, fell 1.2 percent in August after a revised increase of 1.2 percent in July, data from the Economy Ministry in Berlin showed on Wednesday. The reading, which tends to be volatile, compares with a median estimate for a 0.2 percent gain in a Bloomberg survey of economists. Industrial production advanced 2.3 percent from a year earlier.
Germany is grappling with a slowdown in China and other emerging markets, which have been key destinations for its exports. With factory orders from countries outside the 19-nation euro region down more than 13 percent in July and August combined, the focus is shifting to strengthening domestic spending fueled by pent-up investment demand and consumption.
“Over the last couple of months, the industrial safety net of low inventories and filled order books has become thinner,” said Carsten Brzeski, chief economist at ING-Diba AG in Frankfurt. “Somehow, the weak euro and extremely favorable financing conditions have not fully deployed their full impact on the economy, yet.”
The single currency was little changed after the report and traded at $1.1265 at 8:15 a.m. Frankfurt time. It’s depreciated by more than 11 percent in the past year.
http://www.bloomberg.com/news/articles/2015-10-07/german-industry-output-unexpectedly-falls-amid-chinese-slowdown