By Maria Martinez
German exports and industrial production rose more than expected in November, but the outlook for the euro zone’s largest economy remains anything but rosy.
Exports increased by 2.1 percent in November compared to the previous month, data from the statistics office showed on Thursday. The result compared with a 2.0 percent increase forecast in a Reuters poll.
While exports to EU countries dropped by 1.7 percent on the month, exports to countries outside of the EU increased by 6.9 percent.
Exports of goods to the United States were up 14.5 percent compared with October and exports to the UK rose by 8.6 percent, while exports to China decreased by 4.2 percent, data from the statistics office showed.
Imports were down by 3.3 percent on a calendar and seasonally adjusted basis compared with October.
The foreign trade balance showed a surplus of 19.7 billion euros ($20.30 billion) in November, up from 13.4 billion euros in October.
Meanwhile, German industrial production rose by 1.5 percent in November compared to the previous month, the federal statistics office said on Thursday. Analysts polled by Reuters had predicted a 0.5 percent rise.
“This rebound in industrial activity unfortunately comes too late to avoid another quarter of stagnation or even contraction,” said Carsten Brzeski, global head of macro at ING.
Compared with November 2023, production was 2.8 percent lower in November 2024 after adjustment for calendar effects.
The less volatile three-month on three-month comparison showed that production was 1.1 percent lower in the period from September to November than in the previous three months.
Although industrial production picked up in November, the level of output was still very low by past standards: 8 percent below its level before Russia’s February 2022 invasion of Ukraine and 15 percent below an all-time high in November 2017, said Franziska Palmas, senior Europe economist at Capital Economics.
Industrial orders declined 5.4 percent in November from the previous month, the federal statistics office said on Wednesday, showing that demand remains weak.
“With industry facing several structural headwinds we expect the sector to continue to struggle this year,” Palmas said. —Reuters
