German industrial output shows increase

Industrial output in Germany rose unexpectedly strongly in August, data published by the finance ministry in Berlin showed today…

Industrial output in Germany rose unexpectedly strongly in August, data published by the finance ministry in Berlin showed today.

But this growth was more due to statistical anomalies than any brightening of the growth outlook.

German industrial output rose by 2 per cent in August from the figure for July, after falling by 1.3 per cent the previous month, the ministry said in a statement.

Analysts had been expecting a slight rise of just 0.2 per cent in August output. However, the ministry explained that the rise was largely a result of statistical distortions.

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"The figures could be distorted by holiday effects, since there was an unusually high number of school holidays in July," the ministry said.

That weighed on activity in July but meant output appeared to surge sharply in August as a result of a statistical base effect. Such anomalies were ironed out when using a two-month comparison, the ministry said.

Pan-German industrial output slipped by 0.4 per cent in July and August combined from the figure for May and June.

Manufacturing sector output rose by 2.4 per cent in August from July and construction output edged up 0.9 per cent, while energy output remained unchanged.