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BERLIN: German industrial output fell unexpectedly in October, data showed on Friday, adding to signs that a cooling trend in Europe's largest economy will continue in the fourth quarter.

Data from the Statistics Office showed industrial output fell by 0.5 percent, confounding a Reuters forecast for an increase of 0.3 percent.

The figure for September was revised down to a rise of 0.1 percent from a previously reported increase of 0.2 percent.

A breakdown of the data showed that activity in the manufacturing, energy and construction sectors had contracted.

The Economy Ministry put the contraction down to continued bottlenecks in new car registrations due to the the introduction of stricter pollution standards, known as WLTP.

But export-dependent manufacturers in Europe's economic powerhouse are also feeling the brunt of disputes over tariffs on goods between the United States and two of its most important trading partners: China and the European Union.

The ministry said it expected the industrial sector to recover in the last two month of the year as car registration bottlenecks clear up.

Data published on Thursday showed that strong demand from abroad was behind an unexpected rise in German industrial orders in October. The figures suggested that exports may still support the economy despite broader global trade friction.

Copyright Reuters, 2018

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