German industrial output unexpectedly fell in October as production of capital goods dropped sharply, official data showed today, in a fresh setback for the recovery of the economy.
The seasonally adjusted month-on-month fall of 1.8 per cent compared with the mid-range forecast in a Reuters poll of economists for a rise of 1.0 per cent.
The preliminary Economy Ministry data showed September's figure was revised up to show a gain of 3.1 per cent compared to a 2.7-per cent rise previously reported.
"The industial production trend remains clearly upward. The recovery of industrial production should continue in the fourth quarter, with a weakened dynamic," the ministry said in a statement.
A breakdown of the production data showed that output of capital goods fell by 3.5 per cent on the month.
Manufacturing orders fell by 2.1 per cent on the month in October on weaker export demand, the ministry said yesterday.