German industrial production jumped 2.0% in August on a construction surge, masking a 10.6% collapse in factory orders and a 5.4% drop in auto output. The European Central Bank now has to read through that noise ahead of its October 28-29 meeting.
Holger Zschäpitz notes German output is still about 8% below its 2021 average even after August’s construction-led rebound, leaving a long road to recovery. Source
German industrial production jumped 2.0% month-on-month in August, four times the 0.5% consensus and a sharp reversal from a revised −1.2% in July, according to Destatis, Germany's federal statistics agency. On the surface, it's the kind of print a hawkish European Central Bank (ECB) could point to as evidence the economy can absorb higher rates. Underneath, it's mostly cement and scaffolding, not machine tools.
