German Industrial Production Rises 0.7% in September, Beating Forecasts

German industrial production unexpectedly increased by 0.7% in September compared with the previous month, according to Germany’s Federal Statistics Office. The growth was mainly driven by a seasonal upswing in the automotive industry, surpassing analysts’ expectations of no change.

However, the positive figures were partly offset by a downward revision to August’s growth. Industrial output in August was revised to a 1% increase, down from the initially reported 2%. On a year-on-year basis, German industrial production recorded a 0.4% rise in September.

Despite the latest improvement, economists remain cautious about the country’s industrial outlook. Commerzbank Chief Economist Joerg Kraemer noted that industrial production continues to move sideways at a relatively low level, suggesting that Germany’s manufacturing sector is yet to achieve a strong recovery.

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