GERMAN DATA
German industrial production decreased by 1.0% M/M in October, disappointing against a consensus estimate of +1.0%, and comparing to a prior of -2.0%, revised from -2.5%. On a yearly basis, IP came in at -4.5% (vs -3.3% cons; -4.3% prior, revised from -4.6%). MNI had flagged downside risks to consensus after yesterday's revenue in manufacturing print (a parallel release with factory orders). As such, despite yesterday's comparatively solid factory orders print, the data shows the ongoing slump in the industrial sector not disappearing any time soon - mirrored by sentiment.
- The less volatile 3m/3m measure remained in negative territory but ticked up to its strongest level since March, printing -0.4% (-1.7% prior).
- Looking at the major categories, the overall print was dragged lower by energy (-8.9% vs -0.1% prior) but also the heavy-weighted manufacturing (-0.3% M/M vs -2.7% prior) was weak. Construction was unchanged in October vs -0.9% prior.
- Within manufacturing, vehicle production, which saw pronounced volatility recently, fell 1.9% (-8.3% prior) and is broadly back to levels seen in early 2024 (which were similar to ones seen in 2004).
- Broader sectors within manufacturing were mixed and showed little noteworthy idiosyncratic trends in recent months (investment goods -0.4% vs -3.9% prior, intermediate goods +0.4% vs -1.5% prior, first increase since 3 months, consumption goods -1.0% vs -1.4% prior).
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