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German Industrial Output, Exports Rise in November

BERLIN, Jan 8 Reuters German industrial output and exports rose in November, adding to signs that the manufacturing sector gave impetus to Europes largest economy in the fourth quarter.

Industrial output was up by 0.9 on the month and exports rose by 2.2, figures released by the Federal Statistics Office on Friday showed.

It was the seventh month in a row that both readings rose, following a lockdown in March and April to contain a first wave of the coronavirus pandemic that sparked an economic crisis expected to push Germany into its worst recession since World War Two.

A breakdown of the output data showed that manufacturing and construction compensated for a drop in energy output, which fell by almost 4.

Imports surged by 4.4, which resulted in both the current account and trade balance shrinking from the previous month.

Germany imposed another lockdown in November that was toughened and extended this month as it struggles to contain a second wave of infections, with restaurants, theatres, fitness studios and all other nonessential businesses being forced to close.

Data published today confirm that German manufacturers withstood the restrictions imposed in November much better than many feared and suggest that the economy almost certainly expanded in Q4 last year, Andrew Kenningham, Chief Europe Economist at Capital Economics said in note.

However, we suspect that it will contract again in Q1 as the lockdown… is unlikely to be eased until the spring….

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