German Industrial Output Rebounds But Recession Fears Linger

German industrial production rose 0.3 per cent in August, surpassing economists’ forecasts and providing a glimmer of hope that the sharp contraction in the engine room of the eurozone’s biggest economy may be less severe than feared, the Financial Times reported. Excluding the typically volatile energy and construction sectors, production increased by a healthy 0.7 per cent from the previous month, as an increase in intermediate and capital goods more than offset a decline in consumer goods. The unexpected increase in monthly industrial production followed months of mostly gloomy news on the German economy, which contracted 0.1 per cent in the second quarter and is expected to have a similar decline in the three months to September, putting it into a technical recession for the first time in six years. Read more