BREAKING: German industrial production much higher than expected

German industrial production YoY (seasonally adjusted in November) came in - 2.8% vs -4.5% exp. and -4.75% previously

• Industrial production monthly came in 1.5% vs -0.5% exp. and -1% previously

German November Trade Balance came in at EUR 19.7B vs EUR 14.5B exp. and EUR 13.5B exp.

• German exports came in 2.1% MoM vs 2% exp. and -2.5% previously
• German imports came in -3.3% MoM vs 0.7% exp. and -0.1% previously

EURUSD gains very slightly after the report. Despite higher industrial production, much lower imports may suggest still sluggish demand across the German economy. The rebound in industrial production in Germany is a good indicator, which is quite contradictory to the strong decline in orders. It is worth mentioning that in September we had a massive increase in transportation orders, which is most likely projecting a recovery in industrial production at this point. Since September, however, orders have been falling sharply, with weak order books and high inventories.

Source: xStation5