German industrial production data has failed to match the expectations of analysts, as the country faces lower growth next year
Germany’s factories posted a meagre rise in output this November, as the slumping euro failed to lift exports.
As the value of the currency has depreciated, Germany’s exports have become relatively cheaper, yet hopes of a corresponding jump in manufacturing have yet to be realised.
On Friday the Bundesbank slashed its growth forecasts for 2014, 2015 and 2016, halving its growth estimate for next year.
Despite the dire prognosis for German growth, Jens Weidmann, the Bundesbank’s president, said that “there is reason to hope that the current sluggish phase will prove to be short-lived”.
“It is too soon to draw any firm conclusions about the fourth quarter, but at this rate the industrial sector seems unlikely to perform much better than in the third quarter, when output fell by 0.3pc”, Ms McKeown added.
Full article: Tumbling euro not enough to save Germany’s factories (The Telegraph)