UPDATE 1-German industrial output rises most since May

* Output rise strongest since May

* Upwards trend continues – Economy Ministry

(Adds details, background)

By Annika Breidthardt

BERLIN, Dec 8 (BestGrowthStock) – German industrial output rose at
its strongest monthly rate since May in October, three times
faster than expected and adding to views that Europe’s largest
economy will prove more resistant to a sovereign debt crisis
than its peers.

Industrial production rose by 2.9 percent on the month in
seasonally adjusted terms, preliminary data from the Economy
Ministry showed on Wednesday.

That followed September’s fall, which was revised from -0.8
percent to -1.0 percent and topped even the most optimistic
forecast in a Reuters poll that tipped a median of a 1.0 percent
increase.(ECONDE: ).

“It’s a good start to the fourth quarter, ” said Ulrike
Kastens at Sal. Oppenheim.

“The sentiment indicators have showed that Germany is on
track for expansion. Much points towards Germany growing
strongly in the fourth quarter. The German traffic lights remain
on green,” she added.

The recovery in Europe’s largest economies has continued to
gather pace despite a debt crisis which has hobbled its weaker
states. France’s central bank also upped its fourth quarter
growth forecast on Wednesday and UK manufacturing figures were
again upbeat.

That reinforces the case for countries to press on with
strong budget consolidation in contrast to the United States,
where the government has agreed to continue a programme of tax
cuts to reinflate the economy.

Germany manufacturing orders also rose in October,
rebounding despite a fall in euro zone demand, suggesting orders
were back on track after a plunge in September.

Highlighting the strength of Germany’s industry and its pull
away from peers, Germany’s Siemens (SIEGn.DE: ), Europe’s biggest
engineering company, last month signalled its confidence with a
proposed sharp rise in dividends and a promise of profit growth
driven by emerging markets. [ID:nLDE6AA0PN]

The focus of concern for the global economic outlook has
shifted in recent months from the United States towards the euro
zone, mired in a sovereign debt crisis.

Traditionally export-led Germany is particularly vulnerable
to such crises but has shifted its focus from exporting to other
members of the 16-nation euro zone to emerging markets.
German exports fell unexpectedly in October, but unadjusted
imports surged to a post-war high in a fresh sign that the
consumer sector is taking a stronger role in powering the
country’s growth.
(Reporting by Annika Breidthardt; editing by Patrick Graham)

UPDATE 1-German industrial output rises most since May