German industrial production unexpectedly declined for a second month in October as workers took extra days off, interrupting a race that put Europe's largest economy on track for its best performance in six years.
Production declined 1.4 percent since September, when it fell 0.9 percent revised, the Berlin Ministry of Economy said on Thursday. The reading, which is usually volatile, is compared to the forecasts of a gain of 0.9 percent in a Bloomberg survey. Production increased 2.7 percent from the previous year.
The report comes after factory orders rose unexpectedly for the third consecutive month in October as exporters benefited from the growing demand for investment goods outside the euro area. With full order books and business confidence at record levels, the Bundesbank predicts that the growth momentum will continue in the last quarter and beyond.
Holiday days workers took after two holidays in October contributed significantly to the decline in production, the ministry said in a statement sent by email. "Favorable orders and, above all, more optimistic business expectations indicate the continuation of a good industrial momentum".
The manufacturing industry fell by 2 percent, led by declines in the production of investment goods and consumer goods, according to the report. Energy production increased 5.1 percent.
– With the badistance of Andre Tartar and Kristian Siedenburg