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German Industrial Production Rose 0.8%

Published 08/08/2016, 12:53 PM
Updated 03/09/2019, 08:30 AM

Germany’s industrial production for the month of June jumped 0.8 percent from the previous month, according to the Federal Statistical Office. The country’s federal authority said it was based on a price, seasonally and working day adjusted basis.

The Federal Statistical Office's press release further showed that the industrial output increased 1.5 percent, if the energy and construction sector are not included. The German authority said that production of capital goods registered a hike of 3.5 percent from May and that the production of consumer goods jumped 1.2 percent in June.

However, there were some sectors that also saw a drop in production during the period. Production of intermediate goods lost 0.7 percent, while output in the energy sector fell by 2.7 percent in the month. Moreover, the production in construction was reported to have slipped by 0.5 percent when compared to May.

The official numbers are marginally better than the 0.7 percent gain estimate by market analysts. While the June figures are narrowed amid a weak performance in the construction sector, it is much better than the 0.9 percent month-on-month plunge that was seen in May, according to news reports.

This trailed Deutscher Industrie-und Handelskammertag recently trimming forecasts for German exports to the United Kingdom by 5 percent next year. The Association of German Chambers of Commerce and Industry said it this was throughout the Brexit vote. The expectation followed German companies exporting nearly $98.68 billion worth of goods to the Unites Kingdom last year.

“The muted intake of manufacturing orders speaks for a rather moderate upward development in the coming months,” the Economy Ministry said in a statement. “Manufacturers’ assessment of business conditions remains good.”

European Shares Up POn Stronger Financial Industry Stocks

Eurpean stock markets moved higher on Monday after a robust US payroll data on Friday lifted Asian indices.

The FTSE 100 climbed 0.42 percent to 6,825.11. The DAX jumped 0.80 percent to 6,825.11, while the CAC 40 in Paris added 0.43 percent to 4,429.70.

Banks and mining stocks led the gains, with Barclays (NYSE:BCS) recently on top of the FTSE 100 leaderboard, adding over 3 percent to its market value, and BHP Billiton (NYSE:BHP) up more than 2 percent.

On Thursday, European shares edged higher as an increase in the shares of key financial and industrial stocks such as Aviva (NYSE:AV) and Siemens (NS:SIEM) bolstered the country’s equity markets.

The pan-European STOXX 600 index gained 0.6 percent while.

Market players keep an eye on the Bank of England, which is seen to reduce interest rates for the first time since 2009 later in the day.

On the other hand, corporate earnings season continues in Europe with rather positive news from a couple of heavyweights.

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