Germany on brink of RECESSION? Industrial output PLUNGES in Europe’s economic powerhouse
GERMANY has fuelled fears it is on the brink of recession with the latest slew of weak data pointing further to an economic slowdown.
By LEVI WINCHESTER
Express.co.uk
Wed, Jan 9, 2019
Germany has been hit by weaker than expected industrial output figures for the third consecutive month, fuelling signs that companies are shifting into a lower gear due to mounting political instability in Europe and abroad. The brakes have seemingly been slammed on a nine-year expansion in Europe’s economic powerhouse as an ongoing trade war between the United States and China and Brexit uncertainty continue to rattle global markets. Data released on Tuesday by the Federal Statistics Office in Germany showed industrial output fell by 1.9 percent on the month in November. This figure came in way below the 0.3 percent increase that had been forecast.
The output figure for October was revised down to a fall of 0.8 percent from a previously reported drop of 0.5 percent.
The industrial output figures followed data on Monday that showed retail sales rose more than expected in November while industrial orders fell in the same month.
Carsten Brzeski of ING Bank said the unexpectedly weak production data had increased the risk of a technical recession after a 0.2 percent contraction in the third quarter.
He added: “On the other hand, private and public consumption still have the potential to offset recession forces.”
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