Germany Fears Recession Amid Low Industrial Production - TIME
Time - Wed 9 Jan 15:27 GMT

Germany Fears Recession Amid Low Industrial Production - TIME

Concerns are growing that Europe's largest economy may have slipped into a technical recession after industrial production drop.

  (BERLIN) — Concerns are growing that Europe’s largest economy may have slipped into a technical recession after Germany’s Economy Ministry reported Tuesday that industrial production dropped for the third consecutive month in November.

  Factory production was down 1.9 percent compared with October, following declines of 0.8 percent and 0.1 percent in the previous two months, meaning that the crucially important industrial sector will be a sizeable drag on the overall economy during the fourth quarter.

  New factory orders were also down 1 percent in November, according to statistics released Monday, suggesting a further production drop could be in the pipeline.

  “In fact, the last significant quarterly surge in industrial production dates back to the fourth quarter of 2017,” he said in a research note.

  Full-year gross domestic figures are not being released until next Tuesday, but Brzeski said trade data later this week should make clearer whether Germany entered recession in the fourth quarter.