This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-29517657
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
German industrial output dives 4% in August | German industrial output dives 4% in August |
(about 3 hours later) | |
Germany's economic ministry said industrial production shrank 4% in August adding to the growing picture of a struggling economy. | Germany's economic ministry said industrial production shrank 4% in August adding to the growing picture of a struggling economy. |
The fall was the biggest since early 2009 and was far sharper than the 1.5% drop expected. | The fall was the biggest since early 2009 and was far sharper than the 1.5% drop expected. |
Weak demand for goods in both the eurozone and China, and disruption to trade with important trading partner Russia, are holding back orders. | Weak demand for goods in both the eurozone and China, and disruption to trade with important trading partner Russia, are holding back orders. |
On Monday, figures showed factory orders were down 5.7% in August. | On Monday, figures showed factory orders were down 5.7% in August. |
The fall in production came in sharp contrast to the rise of 1.6% recorded in July, although that was revised down from the initial estimate of 1.9%. | The fall in production came in sharp contrast to the rise of 1.6% recorded in July, although that was revised down from the initial estimate of 1.9%. |
'Weak phase' | 'Weak phase' |
The country's economy started 2014 well but reversed to shrink by 0.2% in the second quarter. | The country's economy started 2014 well but reversed to shrink by 0.2% in the second quarter. |
Business confidence in the country has been falling for five months and evidence is building that the economy barely grew in the third quarter at best. | Business confidence in the country has been falling for five months and evidence is building that the economy barely grew in the third quarter at best. |
The ministry said the timing of holidays had exaggerated the decline, but acknowledged that industrial production was "currently going through a weak phase... all in all, one should expect weak production for the third quarter as a whole". | The ministry said the timing of holidays had exaggerated the decline, but acknowledged that industrial production was "currently going through a weak phase... all in all, one should expect weak production for the third quarter as a whole". |
Timo del Carpio, european economist at RBC Europe said the number was "surprising even relative to our own below-consensus estimate". | |
'Real concern' | |
Germany's economic woes will be of great concern to the eurozone, which is battling persistently low growth and low inflation. | Germany's economic woes will be of great concern to the eurozone, which is battling persistently low growth and low inflation. |
The economies of France and Italy continue to struggle. | The economies of France and Italy continue to struggle. |
The BBC's economics correspondent, Andrew Walker, said: "Germany has been a relatively strong performer during the eurozone's financial crisis so the signs of weakness are a real concern for the region, where an unconvincing economic recovery had already stalled." | |
In September, the European Central Bank introduced new measures to stimulate the area's flagging economy. | In September, the European Central Bank introduced new measures to stimulate the area's flagging economy. |
As well as launching an asset purchase programme, through which it will buy debt products from banks, the ECB cut its benchmark interest rate to 0.05%. | As well as launching an asset purchase programme, through which it will buy debt products from banks, the ECB cut its benchmark interest rate to 0.05%. |
Previous version
1
Next version