- Carsten Brzeski, senior economist at ING Group
Volume of the he industrial output in the Europe's largest economy expanded less than expected in November, a sign that region's debt crisis left its mark on German economy. Production increased 0.2% from the previous month, when the output fell by 2%, posting the first gain in four months. However, the reading came below analysts' expectations of a 1% increase. At the same time, the industrial output in the last quarter of 2012 is expected to be lower from the prior quarter, the Economy Ministry in Berlin showed in its report on Wednesday. Earlier this week, data showed that exports dropped in November at their fastest pace in more than a year, while manufacturing orders turned lower 1.8%, indicating that the economy is running out of steam.
"The German economy probably experienced the worst growth performance in the fourth quarter since the first quarter of 2009," said Carsten Brzeski, senior economist at ING Group in Brussels. "Looking ahead, however, strengthening external demand and sound domestic fundamentals should lead the way out of contractionary territory in the first half of this year."
"The development of the new orders and the slight improvement of sentiment indicators suggest a somewhat more favorable outlook for production in the new year," wrote the ministry.
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