Germany's industrial output rises 0.7% in September, beating forecasts

Germany's industrial production rose 0.7% in September from the previous month, beating market expectations of stagnation, according to official data released Friday.

The increase followed a downwardly revised 1% rise in August, said a statement by Germany's Federal Statistical Office, Destatis.

Markets had expected industrial output to remain unchanged in September.

The stronger-than-expected performance was driven by a 17.1% surge in automotive manufacturing.

The automotive sector rebounded from subdued production during the previous two months, when plant overhauls and summer breaks weighed on activity.

Pharmaceutical manufacturing also contributed to the increase, expanding 8% following two consecutive months of weakness.

However, construction activity contracted 2.6%, while machinery and equipment production fell 6.5%, reversing a 5.8% increase in August.

Excluding energy and construction, core manufacturing output increased 1.7% month-on-month in September.

On an annual basis, Germany's industrial production rose 0.4% in September, according to Destatis.