German industrial output unexpectedly shrank in Oc

Aihuicha, December 7: German industrial output fell for the fifth consecutive month in October, further evidence that Europe's largest economy is heading into recession. Thursday's data showed that output, led by the machinery and equipment sector, fell 0.4% from September and was expected to grow 0.2%. That underscores Germany's growth woes after last winter's energy crisis. Germany's GDP fell 0.1% in the third quarter, and analysts expect another contraction of the same size this quarter, so the possibility of a recession does exist. Manufacturing, a pillar of the German economy, has been particularly affected by expensive energy, rising interest rates and weak global demand. Several large industrial companies have begun cutting costs. Earlier data showed that factory orders fell more than expected, further weakening the prospects for economic recovery.