German industrial production dropped -0.3% mom in August, much worse than expectation of 0.4% mom rise. Recent batch of soft data confirmed that growth momentum has slowed further in 2018. And some concerns were raised as the slowdown could be deeper than expected. In particular, German PMI composite has dropped to a 2-month low of 55.0 in September. Q3 growth is unlikely to match Q2’s 0.5%. The government’s economic projections to be updated this Thursday will shed some mor lights on the outlook.
