Investing.com - German industrial output posted its steepest drop in a year in August, suggesting Europe's largest economy may be losing momentum just as an emissions scandal at Volkswagen (XETRA:VOWG) casts a cloud over manufacturing.
The 1.2 percent drop announced on Wednesday defied expectations for a small rise and followed a sharp decline in August industrial orders data on Tuesday.
Output declined across all sectors in August, except for intermediate goods where production was flat.
The diesel emissions scandal at Germany's biggest car maker Volkswagen could further hurt the sector and the "Made in Germany" brand.