The German economy, a powerhouse in Europe, is facing the threat of a technical recession with a marked decline in industrial production in September, particularly within the automotive sector. This information was revealed by Destatis, Germany's Federal Statistical Office, on Tuesday.
Industrial production fell by 1.4% in September, a figure that surpassed the projected 0.4% drop. The third quarter experienced a 2.1% decrease in total production.
The automotive industry, which is a significant part of Germany's economy, reported a 5% drop in vehicle production from the previous month. Other important sectors such as electrical equipment and pharmaceuticals also recorded declines.
Despite a minor uptick in factory orders for September, largely attributed to large-scale orders and backlogs, economists do not expect this to significantly boost future growth.
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