BERLIN (AFP) – German industrial production fell slightly in October, official figures published yesterday showed, as analysts saw Europe’s largest economy drifting towards a winter recession.
Output dropped 0.1 per cent in October on the previous month, according to preliminary data from federal statistics agency Destatis.
Updated figures showed that production rose more strongly than previously thought in September, up 1.1 per cent instead of 0.6 per cent.
Despite the positive September revision and recent improvements in business confidence indicators, October’s lacklustre reading showed an economic downturn was closing in, analysts said.
“The German economy has not fallen off a cliff but continues its long slide into recession,” said head of macro at ING bank Carsten Brzeski.
Sizeable government interventions to mitigate the impact of rapidly increasing energy costs in the wake of the invasion of Ukraine have helped, Brzeski said.
Berlin has signed off on a EUR200 billion (USD209 billion) package to mitigate the impact of painful price rises for consumers and businesses.
The measures include an energy price cap to come into force next year, which will see the cost for a percentage of typical usage limited to lower-than-market prices.
“The government’s fiscal stimulus is substantial enough to cushion the contraction and to turn a severe winter recession into a shallow one,” he said.