Germany: Industrial production continues to contract for the eighth month in a row
On Wednesday, the German Statistics Office issued data that shows that industrial production in Germany contracted during the month of December at a pace that exceeded market expectations, thus recording the largest sector in the largest economy within the euro zone its eighth contraction in a row.
According to the data, Germany witnessed a contraction in the volume of industrial production by 1.6% during December on a monthly basis, which was worse than market expectations that indicated a contraction of only 0.4%, after contracting during the month of November by 0.2%, as the reading was revised of a contraction of 0.7%.
At the same time, data showed a contraction in industrial production in Germany by 3.0% during December on an annual basis, while industrial production witnessed a contraction of 4.8% during the month of November compared to the same month last year.
It should be noted that industrial production measures the outputs of factories and mines in Germany, and the change in the volume of industrial production is a basic indicator for determining the solidity of the manufacturing sector within Germany.
A positive reading is seen as a positive or bullish indicator for the euro currency, while a low reading of the rate is seen as negative; It’s a negative or bearish indicator for the Euro in Germany.
