German factory output suffered a surprise drop in October, official data showed Friday, underlining the persistent troubles faced by Europe鈥檚 biggest聽economy.
Output fell by one per cent month-on-month, according to聽seasonally adjusted data published by the Destatis agency.
That follows a two-per cent drop in September, according to adjusted figures released by Destatis.
Analysts consulted by financial data firm FactSet had expected factory output to rebound in October, rising by one per cent.
鈥業nstead of the widely expected recovery from the sharp drop in the previous month we have seen another setback,鈥� said Elmar Voelker, an analyst at the LBBW bank.
A steep drop was recorded in October in energy production, which fell by 8.9 per cent month-on-month.
Likewise, in Germany鈥檚 flagship auto industry, which has struggled in the face of high costs and foreign competition, output fell by 1.9 per cent.
Overall, output in October was 4.5 per cent lower than in the same month last year.
The聽economy聽ministry said industrial activity in Germany was 鈥榗ontinuing to slow鈥�.
Other recent indicators 鈥榓lso do not suggest a durable reversal of the trend in the German聽economy鈥�, the ministry said in a statement.
Germany鈥檚聽economy聽grew by just 0.1 per cent in the third quarter, less than expected, and the government predicts a contraction of 0.2 per cent over the whole of 2024.
鈥楲ooking towards next year, the early signs are not any better given the threatened trade war with the USA, Germany鈥檚 most important trade partner,鈥� Voelker said.
The tariff rises mooted by US president-elect Donald Trump could knock as much as one per cent off Germany鈥檚 GDP, according to the president of the German central bank.
