German economy remains robust in third quarter amid Brexit fears

Germany’s economy remained robust in the third quarter even in light of a fresh dip in industrial production and exports, analysts said Tuesday, but Brexit fears remain on the horizon.
Industrial production slipped by 1.8 percent, corrected for price, seasonal and calendar effects, in September compared with the previous month, the federal statistics office Destatis said.
That was a much steeper slide than predicted by analysts surveyed by Factset who had expected a 0.4-percent drop.
The statistics office also revised up the level of month-on-month growth in August, from a 2.5 preliminary reading to 3.0 percent.
Meanwhile, a 0.7-percent fall in exports compared with August, adjusted for seasonal swings, cut Germany’s trade surplus as it outpaced falling imports.
A statement from the economy ministry greeted a “slightly positive picture” of 0.3-percent quarter-on-quarter growth in industrial production over the three months from July to September.
Fewer public holidays in the fourth quarter and a slight pick-up in industrial orders and other economic indicators could point to faster growth in the months ahead, the ministry statement read.
“Monthly data is volatile,” economist Florian Hense of Berenberg bank said, adding that weak September data “is not the start of a new trend.”
“Economic activity is unlikely to lose momentum at the end of the year,” analyst Stefan Kipar of BayernLB bank agreed.
Germany has seen positive purchasing managers’ surveys, an indicator of future activity, while business confidence hit a two-year high in October after a slump following Britain’s June vote to quit the European Union.

Source: Arab News