- Andreas Rees, Unicredit Chief Economist
Industrial production in Germany failed to emerge in expansion territory in September, following a steep decline in the prior month. According to the Destatis, factory production in the Euro area's powerhouse economy dropped 1.1% in the given period, after reporting a revised 0.6% decrease in August. The final reading missed market expectations of 0.5% growth in September. In annual terms, output advanced 0.2% in the reported period, compared to a 2.7% rise in the preceding month. Meanwhile, regarding to industrial sector in other major European economy, the industrial output in Spain expanded at a faster pace in September, as the gauge posted a 3.8% rise during September on an annual basis, compared to the previous month's 2.8% reading.
In the meantime, the state budget deficit in the second biggest European economy, France, narrowed over the first nine months of 2015, compared with the same period in the prior year, as spending dropped slightly, while tax revenue increased. The deficit fell to 74.5 billion euros at the end of the reported period from 80.5 billion euros over the same period a year earlier. At the same time, spending fell by 2.7 billion euros, while tax revenue increased by 2.5 billion euros.
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