German Industrial Output Slips as Economy Wraps Bumper Year

Release Time：08 Feb,2018

<p style="text-align:center;"> <img src="/membcentre/editor/attached/image/20180208/20180208085750_33403.jpg" alt="" /> </p> <p> Bolstered by strong domestic demand and surging trade worldwide, manufacturing has been driving Germany’s economic boom — and the upturn is set to continue in coming months after orders rose 3.8% in December. </p> <p> <br /> </p> <p> German industrial production slipped in December after strong momentum throughout the year helped Europe’s largest economy expand at the fastest pace since 2011. </p> <p> <br /> </p> <p> Factory output declined 0.6% from November, when it increased a revised 3.1%, the Economy Ministry said on Wednesday. The reading, which is typically volatile, compares with estimates for a 0.7% drop in a Bloomberg survey. </p> <p> <br /> </p> <p> Bolstered by strong domestic demand and surging trade worldwide, manufacturing has been driving Germany’s economic boom. The upturn is set to continue in coming months after orders rose 3.8% in December, while a wage agreement between employers and the country’s largest union — representing some 3.9 million metalworkers and engineers — removes the risk of strikes and provides clarity on labor costs. </p> <p> <br /> </p> <p> On Tuesday, IG Metall won a 4.3% pay increase over 27 months in a key state, plus additional one-time payments, and options to temporarily reduce working hours. </p> <p> <br /> </p> <p> The Bundesbank says the German economy will maintain its drive. After growing 2.2% last year, gross domestic product is forecast to increase 2.5% in 2018. A gauge of manufacturing activity remained close to a record high at the start of the year. </p> <p> <br /> </p> <p> “Industrial output was very dynamic in the course of 2017 but has lost some momentum lately,” the ministry said in a statement. “Nonetheless, production is clearly pointing upward, and in light of strong orders in December and good sentiment indicators, strong manufacturing momentum can be expected in the coming months.” </p>