German output dips, exports soar; growth still solid

* Ind. output fell unexpectedly in Sept, down 0.8 pct m/m

* Analysts say recovery entering period of consolidation

* Sept exports grow twice as fast as expected

* Output data sends euro to day’s low vs dollar (EUR=: )

(Combines output, trade data)

By Sarah Marsh

BERLIN, Nov 8 (BestGrowthStock) – German industrial output fell at
its sharpest monthly rate in nearly a year in September while
exports soared, painting a mixed picture of an economy expected
to have posted solid if unspectacular growth in the third
quarter.

Output fell by 0.8 percent on the month in seasonally
adjusted terms, the Economy Ministry said on Monday, missing the
median forecast for a 0.5-percent increase in a Reuters poll and
sending the euro to the day’s low against the dollar. (ECONDE: )

The decline was the strongest since October 2009 after
output rose strongly in the previous month – adding up to a rise
of 1.2 percent on a rolling two-month basis. [ID:nLDE696172]

“A slight decline in September is not the end of the world,”
said Andreas Scheuerle at Dekabank. “The industrial sector and
indeed the economy seems to be continuing to grow but at a more
moderate rate.”

“Third quarter (GDP) could expand generously once again,
with growth of 0.8 percent,” he added.

Gross domestic product data is due on Nov 12. The median
estimate in a Reuters poll of 40 economists is for growth of
0.70 percent.

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For a graph on German industrial output and GDP, click on:

http://r.reuters.com/xev34q

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The German economy expanded at 2.2 percent quarter on
quarter in the second quarter of the year, its fastest rate in
reunified Germany.

The strength of the euro and a stuttering outlook for some
of its global trading partners are likely to weigh on demand for
German manufacturing goods but growth should still hold up.

Exports grew twice as fast as expected in September and the
trade surplus to its widest in nearly two years, data showed
earlier on Monday.

“After the strong second quarter, the industrial recovery
has lost some pace and seems to have entered a period of
consolidation,” said Carsten Brzeski at ING.

“The German economy has clearly shifted into a lower gear
without stalling the engine.”

Industry orders also fell in September, plunging at their
steepest rate since the start of 2009, data showed last week.
[ID:nLDE6A40XA]

“Given the equally weakened momentum in orders, the slightly
more sedate yet upwards trend in industry should continue,” the
Economy Ministry said.

Manufacturing output led the decline in industrial output,
falling 0.9 percent, while energy output rose 1.2 percent and
construction output gained 0.4 percent.

(Additional Reporting by Paul Carrel and Klaus Lauer; Editing
by John Stonestreet)

German output dips, exports soar; growth still solid