German industrial output disappoints

By Nina Adam

FRANKFURT
Germany's important industrial sector had a weak start to the fourth quarter, as production volumes unexpectedly dropped in October from September, signaling Europe's largest economy is having a bumpy ride to full recovery
Industrial production in October dropped 1.2% from the previous month, far short of economists' expectations of a 0.8% increase, due to lower manufacturing and construction output, data from the economics ministry showed 
The drop came amid weak demand for German manufacturing goods in October
Orders in the sector were down 2.2% from September, according to official data published
But the economics ministry took heart from rising business sentiment indicators, predicting Monday that German "industry should again expand its production in the coming months."
Manufacturing output in October fell 1.1% from September, while construction output was down 1.7%
But overall industrial activity was slightly higher than a year earlier, the data showed, as total output rose 1.0% in October this year compared with the same month last year, adjusted for the number of working days in each month