German output beats expectations
BERLIN, Germany (Reuters) -- German industrial output rose almost twice as much as expected in October, data showed on Friday, as evidence of accelerating growth in Europe's biggest economy accumulates.
Production at factories, power stations and building sites surged 2.4 percent from the previous month on a seasonally adjusted basis, led by output of intermediate and capital goods, the Economy Ministry said. The preliminary data were likely be revised up, it added.
The consensus forecast of economists polled by Reuters (EUROLANDDEC) was for a monthly gain of 1.3 percent.
German companies are benefiting as a global economic recovery deepens and demand for German goods strengthens. Luxury car maker BMW said on Friday worldwide vehicle sales surged 14.2 percent in November compared with a year earlier.
Heinrich von Pierer, chief executive of industrial conglomerate Siemens AG, said on Thursday the company's mobile phones unit was doing better than expected this quarter, with handsets practically "sold out." The jump in German production in October follows data on Thursday that showed industrial orders advanced a bigger-than-expected two percent in October from the previous month, as demand for consumer goods surged. In September, orders increased 1.9 percent.
Economists said that suggested production will be strong in the fourth quarter as orders are a good leading indicator of future industrial output. "The German domestic economy is obviously gathering steam," said Stefan Bielmeier, an economist at Deutsche Bank in Frankfurt.
Evidence of a cautious recovery is mounting. A leading indicator for Germany compiled by the Organization for Economic Cooperation and Development rose to 127.4 in October, from 125.8 the previous month, the group said on Friday.
Adding to signs of an upswing in the 12-nation euro-zone, government data on Friday showed Spanish industrial production advanced 0.9 percent in October compared with a year earlier.
According to Reuters calculations, German output in October rose by 0.6 percent from the same month a year earlier, the first annual increase since July and beating forecasts for a drop of 0.4 percent.
The Economy Ministry revised up September's output index, but August data was also revised, leaving September output unchanged month on month compared with a previous reported gain of 0.2 percent.
Production in the wealthier western states increased by 2.4 percent, while output in the former Communist states of eastern Germany advanced by two percent.
The capital goods component of the production index jumped 4.8 percent, while output of intermediate products rose by 3.2 percent, the ministry said.
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