German Economic Output Continues To Impress

Figures released by the Statistisches Bundesmant Deutschland have indicated that German industrial production grew by 3.2% over October. This was the biggest increase in 4 months and easily beat market expectations of 1.6%. Energy output and construction activity were the biggest contributors towards the growth as Germany continues its post-pandemic recovery.

The positive figures are the latest in a long line out of Europes largest economy, and helped push the Euro to its highest level against the US dollar since April 2018. Novembers unemployment rate dropped to its lowest level since April 2020 and retail sales outperformed the market consensus by over double during the same month.

Manufacturing and factory output also remained strong as demand for vehicles returns, whilst todays industrial production reading will come as further welcome news for the markets. Some analysts are now predicting the countries second lockdown will not have as severe impact as the first and is a promising start to the final month of 2020.

Attentions now turn to EU & UK Q3 GDP later this week, whilst mounting Brexit tensions have seen GBP weaken against all G10 currencies. The EU’s chief negotiator Michel Bernier has warned he “cannot guarantee” there will be a deal, with sticking points over fisheries and business access yet to be resolved.