German production rises to fastest in 3 years

German industrial production beat all expectations to rise at its fastest rate in almost three years in August, boosted by manufacturing…

German industrial production beat all expectations to rise at its fastest rate in almost three years in August, boosted by manufacturing and construction gains, preliminary economy ministry data showed today.

The 1.9 percent seasonally-adjusted monthly increase was the strongest since October 2003 and followed July's downwardly-revised gain of 0.8 per cent.

The rise in August output comes after data showed German industrial orders surged 3.7 per cent that month, while the trade surplus was wider than expected.

Together, the figures suggest the German economy continued to grow at a robust pace in the third quarter after a 0.9 per cent expansion in the second quarter - the strongest rate in more than five years.

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A breakdown of the August figures showed manufacturing output rose by 2.3 per cent on the month, while construction advanced 1.2 percent. Energy output fell 1.9 per cent.

The economy ministry said the growth dynamic in the industrial sector had strengthened further and strong demand for industrial goods suggested firm growth in coming months.