German industrial production declines in August, dragged by car sector

Germany's industrial output contracted in August amid a sharp decline in the automotive industry and in the manufacture of machinery and equipment, data showed on Wednesday.

The Federal Statistical Office reported that industrial production fell 4.3% in August from July, after a 1.3% climb in July from June.

Annually, industrial output was 3.9% lower in August, compared to growth of 1.5% in July.

Pertinently, the automotive industry, Germany's largest industrial branch, had a 19% on-month fall in output in August, which the statistical office noted may be explained by a combination of annual plant closures for holidays and production changeovers.

Further, there was a 6.2% monthly decline in the manufacture of machinery and equipment in August, after 9.2% growth in July.

Finally, a 10% fall in production in the pharmaceutical industry and a 6.1% contraction in the manufacture of computer, electronic & optical products provided an additional negative impact during August.