Rolling coverage of the latest economic and financial news
- Introduction: German industrial output slumped in October
- Output -5.3%: worst since 2009
- Recession fears are rising
Here’s Carsten Brzeski, chief economist at ING Germany, on the factory slump:
oday’s data suggests that the German economy is continuing to flirt with stagnation and contraction in the final quarter of the year.
Capacity utilisation has dropped to its lowest level since early 2013. At the same time, the well-known supply-side constraints have also started to ease but not with the same magnitude as capacity utilisation. The lack of skilled employees and too little equipment as limiting factors have dropped to their 2017-levels, suggesting that the current slump in manufacturing is still a combination of supply-side and demand-side factors.
On an annual basis, Germany just suffered its worst drop in factory output since the financial crisis!