Positive Readings for German Economy in Q3

The German economy was able to conduct a reversal from the slackening summer with its most productive months in six years. The biggest economy in the European Union manages to keep a strong position during the second half of 2017. On Monday, the factory output, inflation, and seasonal adjustments rose by 2.6 percent in July after the downward revision of 0.1 percent, according to the Economy Ministry in Berlin. The indicated figures recorded the biggest expansion since July 2011 versus the projected increase of 0.9 percent, considering the indicator is generally known to be volatile. Moreover, the production perked up by 4.7 percent from a year ago.

The report was issued after the rebound of factory orders in August which increased since December, while exporters took advantage from the international demand.

The Deutsche Bundesbank expects that the German industry will continue to have a strong performance in the third quarter but the momentum was slightly lower compared in the first half of the year.

The euro had slight changes after the release of data and trades at $1.1728 8:45 a.m. Frankfurt time. Furthermore. The manufacturing jumped by 3.2 percent, while investment goods production surge to 4.8 percent and the construction reduced by 1.2 percent in the previous month.