German Industry Struggles as Output Falls, Orders Remain Weak

German industrial output fell 0.2% in August, more than expected, indicating ongoing challenges for the sector.

The decline was driven by volatile components like construction, energy, and machinery production.

Industrial orders rose 3.9% in August but order books remain thin, signaling continued weakness ahead.

The manufacturing sector PMI remained far below 50, at 39.6 in September, reflecting an ongoing downturn.

Retail, exports and industrial output all disappointed in Q3 so far, raising recession risks for the German economy.