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Germany industrial output up 4 percent in July

Germany industrial output up 4 percent in July

Chancellor Angela Merkel insisted that Europe's largest economy will avoid sliding back into recession after official figures showed industrial production in Germany surged by far more than anticipated in July.
Industrial production in Germany grew 4 percent in July over the month before, according to figures from the Economy Ministry. That was substantially higher than market expectations for a 0.5 percent increase.
The jump more-than erased the 1.1 percent drop in June over May, according to seasonally adjusted figures.
Chris Williamson, chief economist with financial information company Markit, signaled a note of caution, however, saying that recent data have indicated that demand has fallen, which could hit production over the coming months if companies look to draw down their stocks.
"Producers are struggling in the face of weak foreign demand and a drop in business confidence in the home market," he said.
"The German manufacturing sector could well slip back into contraction in the third quarter, despite the buoyant July production number."
In a speech to parliament, Merkel said that overall "Germany is doing well" and that she didn't see any signs of recession.
"Like I have said, Germany should come out of the crisis stronger than it entered," she said.
The comments come despite signs the economy is slowing, including a recent slip in business confidence and disappointing second-quarter economic growth figures.
In another positive indication Wednesday, however, the Federal Statistics Office reported that bankruptcies were down in the first half of 2011, compared with the first half of 2010.
The Wiesbaden-based office said insolvency courts reported 80,315 bankruptcies during the first half of the year, 5 percent down on last year. The 15,247 companies going bankrupt were 7.4 percent down on the previous year.


Updated : 2021-05-08 23:43 GMT+08:00