Germany’s industrial production grew unexpectedly in November, while exports registered its biggest fall since May 2024, official data revealed on Friday.
Industrial output climbed 0.8 percent month-on-month in November, Destatis reported. Although it was weaker than the 2.0 percent increase in October, the increase confounded economists’ forecast of 0.6 percent fall.
The positive development was mainly attributable to the growth in the automotive industry and in the manufacture of machinery and equipment, data showed.
Excluding energy and construction, industrial output climbed 2.1 percent from October.
Construction output was down 0.8 percent. At the same time, energy output logged a sharper fall of 7.8 percent.
Moreover, production of intermediate goods dropped 0.8 percent, and consumer goods output slid 0.3 percent. In contrast, capital goods production surged 4.9 percent.
On a yearly basis, industrial production logged a growth of 0.8 percent after rising 1.0 percent in October.
Another report from Destatis showed that exports declined the most since May 2024, while imports rebounded more-than-expected from October.
Exports decreased 2.5 percent in November, reversing prior month’s 0.3 percent increase. Shipments were forecast to remain flat. Meanwhile, imports grew 0.8 percent, in contrast to the 1.5 percent fall in October. Economists were expecting a 0.2 percent gain.
Consequently, the trade balance showed a surplus of EUR 13.1 billion compared to EUR 17.2 billion surplus in October.
ING economist Carsten Brzeski said official data added to the tentative signs of a bottoming out.
The largest euro area economy is still struggling to return to growth, he said. The economist expects another quarter of stagnation.
“… these tentative signs of an industrial turning point, combined with the full implementation of fiscal stimulus, support our view that the German economy will finally return to growth this year,” said Brzeski.
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