September Stumbles Show Brexit Risks For Germany: Analysts
Rukhshan Mir (@rukhshanmir) Published November 08, 2016 | 02:00 PM
FRANKFURT, Nov 8, (UrduPoint / Pakistan Point News - 08th Nov, 2016 ) - German industrial production and exports both fell in September, official data showed Tuesday, with analysts predicting Britain's exit from the European Union could inflict further pain.
Industrial production dipped by 1.8 percent corrected for price, seasonal and Calendar effects in September compared with the previous month, the Federal statistics office Destatis said. That was a much steeper slide than predicted by analysts surveyed by Factset who had expected a 0.4-percent drop.
The statistics office also revised up the level of month-on-month growth in August, from a 2.5 preliminary reading to 3.0 percent. Meanwhile, a 0.7 percent fall in exports compared with August, adjusted for seasonal and calendar effects, cut Germany's trade surplus as it outpaced falling imports.
A statement from the economy ministry in Berlin greeted a "slightly positive picture" of 0.3 percent quarter-on-quarter growth in industrial production over the three months from July to September.
Fewer public holidays in the fourth quarter and a slight pick-up in industrial orders and other economic indicators such as business confidence could point to faster growth in the months ahead, the ministry statement read.
"The falls in September should be seen clearly in the light of the strong growth in August," analyst Stefan Kipar of BayernLB bank agreed. "Economic activity is unlikely to lose momentum at the end of the year," he went on, although "a few clouds are darkening the horizon with the British Brexit trigger in the new year." chas vowed to launch the UK's two-year negotiation to quit the European Union by the end of March.
The outcome of the island nation's in-out referendum in June has already hit German exporters by weakening the British pound, analyst Carsten Brzeski of ING Diba bank said. "Brexit uncertainty, a mature business cycle and political and economic uncertainty in many important trading partners" would prevent a clear growth trend emerging in German industry in the near future, he argued.
Related Topics
Recent Stories
No one will be allowed to disrespect Shuhada: COAS
Punjab CM Maryam visits Jinnah House in connection with May 9
NA speaker strongly condemns killing of 7 innocent workers in Gwadar
Govt cracks down on crop residue burning
Lawyers observe strike
Pakistan takes on Ireland in inaugural T20I series on Friday
ICCI organize ceremony to express solidarity with Armed Forces of Pakistan
Religious affairs ministry awards top talent in Hifz-o-Qirat competition
Commissioner for stern action over dengue larvae
2 outlaws arrests in separate alleged encounters
Khana Badosh café to host session on ‘pages of autobiography’ on May 12
Collaborating with Sindh Government, KMC extends operations to 50 towns": Mayor ..
More Stories From Business
-
ICCI organize ceremony to express solidarity with Armed Forces of Pakistan
24 minutes ago -
Habib Arif posted as MD SIDB KP
8 minutes ago -
Finance minister highlights economy-stabilizing efforts
8 minutes ago -
Call for Tobacco Tax Increase to Safeguard Child Rights and Public Health
1 hour ago -
IPAK to raise Rs. 1.77b in book building process
8 minutes ago -
Spanish bank BBVA goes hostile in Sabadell takeover bid
22 minutes ago
-
Pakistan's total liquid foreign reserves surge over $ 14.45 billion
22 minutes ago -
Federal Minister for Economic Affairs, Ahad Khan Cheema chairs meeting with EDCF, Country Programme ..
2 hours ago -
London, Frankfurt stocks hit record highs on rate-cut hopes
3 hours ago -
Joint efforts imperative to address agriculture sector issues: minister
2 hours ago -
London, Frankfurt stocks hit record highs on rate-cut hopes
3 hours ago -
Spain vows to block BBVA's hostile bid for rival bank
3 hours ago