- Anatoli Annenkov, senior economist at Societe Generale SA
Amid continuous signs of economic amelioration in the 17-nation area, Germany is still leading growth and gaining momentum, as industrial output advanced above estimates in August, suggesting Europe's powerhouse is benefitting from broadening recovery. A report from the Economy Ministry showed output advanced 1.4% following a 1.1% drop a month earlier, and outpacing analysts' predictions of a 1% pickup. On an annual basis, production inched up 0.3%, recovering from July's drop of 1.7%. A day earlier, figures showed a rebound in exports, while factory orders registered an unexpected drop.
Europe's largest economy is supported by an extremely high consumer climate, which is climbing higher with each month on the back of a robust labour maker. Overall manufacturing production gained 2.1% in August, as production of investment goods rocketed 4.4%.The Bundesbank expects growth to accelerate for the rest of the year, saying German economy will expand 0.3% in 2013 and 1.5% in the next year. Despite the strong uptrend in industrial production, the recovery is uneven, as the lack of new orders (second consecutive monthly drop) is suggesting recovery may struggle to build up steam in the coming months.
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