- Rainer Sartorius, economist at HSBC
Industrial output in Germany unexpectedly fell in November, adding to signs that the recovery in the Euro zone's powerhouse remains fragile. Industrial production fell a seasonally adjusted 0.1% in the reported period, following a revised 0.6% growth in the preceding month, Destatis reported. On an annual basis, production declined 0.5% in November, compared with a revised 1.2% advance recorded in the previous month. On top of that, Germany posted a smaller trade surplus of 17.9 billion euros in November, down from 22.1 billion euros in the preceding month, whereas analysts had predicted a 20.4 billion euro surplus. Destatis said exports dropped by 2.1% compared with the October's volume. Year-on-year, exports climbed by 1.4%. In contrast, imports in November increased by 1.5%.
In the Euro zone' second biggest economy—France, industrial output also remained sluggish in November, according to t he National Institute of Statistics and Economic Studies. Factory production dropped 0.3% in November when measured on a monthly basis. Analysts, however, had expected a 0.3% rise. Measured on an annual basis, industrial output fell 2.6% in the reported period, compared to analysts' predictions of a 1.9% decline. Manufacturing output contracted 0.6%, after shrinking 0.1% a month earlier, falling more than expected.
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