By Ludwig Burger
FRANKFURT (Reuters) -German industrial production rose less than expected in September, increasing 1.3% over the previous month amid gains in the car and electronics industries but tempered by a decline in mechanical engineering, the statistics office said on Thursday.
The data came below a 3% consensus forecast in a Reuters poll of economists and prompted the economy ministry to warn there was no sign of a fundamental upswing in Europe’s largest economy.
“The trend in the manufacturing sector remains weak,” the ministry said in a statement, pointing to energy-intensive sectors making chemicals, glass and paper that were stagnant or in retreat.
The figure underscored muted business confidence reflected in an indicator of future manufacturing output published on Wednesday.
It showed industrial orders increased more than expected in September but in a less volatile three-month comparison they declined 3% in the third quarter compared to the second quarter.
Chancellor Friedrich Merz’s government has sought to bolster the economy with higher infrastructure spending, tax cuts, and by reducing some red tape and electricity prices for businesses.
But that has been seen as a longer-term boon for businesses while uncertainty over trade and tariffs prevails.
Carsten Brzeski, head of macroeconomic analysis at ING, said the rebound was too weak to mark a fundamental turnaround.
“Even with some cyclical rebound in the making, structural weaknesses will put a lid on German industrial production for a while,” Brzeski said.
(Reporting by Bernadette Hogg and Ludwig Burger, Editing by Friederike Heine, Miranda Murray and Tomasz Janowski)
