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Latest German figures show growth is sagging

German industrial production drop bigger than expected
German industrial production drop bigger than expected

Government data show that industrial production in Germany fell by a sharper than expected 2.7% on the month in September - adding to signs that growth is sagging in Europe's biggest economy. Economists had expected a smaller drop of 0.9%.

However, the Economy Ministry said the drop was exaggerated by the effect of public holidays and the previous month's figure was revised upward. It now says production dipped by 0.4% in August rather than the 1% initially reported.

Over the whole of the third quarter, industrial production rose 1.7% compared with the previous three months. The production figures come after the Economy Ministry said on Friday that industrial orders fell 4.3% in September.