German Industrial Output Buoyed by AI Boom

Dow Jones
Oct 07

0946 GMT - Industrial production in Germany was supported by the so-called "digitalization" sector in August, says Sebastian Wanke at KfW Research in a note. This related to data-processing equipment as well as electronic and optical products such as lasers, used in the production of semiconductors. "This development shows that the boom surrounding AI and data centers has also taken hold in Germany," Wanke says. The strong performance for August came against low expectations due to repeated setbacks this year, including drought over the summer. Stronger trends in industrial order books, particularly in manufacturing, are benefiting from higher investment in defense, Wanke says. "Against this backdrop, production is set to rise and, hopefully, the joy of growth will soon return to this country."

 

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