07.12.201722:42:00UTC+00German Industrial Production Declined in October

German industrial production suddenly dropped in October from the previous month, marking its largest decline of this year.

According to the Economy Ministry, industrial output fell by 1.4 percent after declining by a revised 0.9 percent in September. The two successive drops came follows a rise of 2.6 percent in August, the largest growth in over six years.

According to Carsten Brzeski, ING's chief economist for Germany, “there is no reason to get worried about the current strength of the German economy.” He claims the weakness was likely due to one-off factors like public holidays and long weekends, pointing to stronger than expected manufacturing orders data as a sign of strength in the German economy.

Consumption, state spending and rising exports are driving growth in both industry and services.

Bolstered by low interest rates and a strong labor market, the economy is withstanding a political impasse resulting from Chancellor Angela Merkel's failure to form a government since an election in September.

She is expected to open negotiations next week with the center-left Social Democrats on renewing their coalition, which has governed Germany since 2013.

A breakdown of the data showed that output fell in all industrial sectors except for energy. Capital goods, consumer goods, intermediate goods and construction declined the most.