Germany industry not as bad as it looks

Some of the recent weakness in euro-zone industry, particularly that in Germany, seems to have been caused by hold-ups relating to new emissions tests. While part of this delayed output will probably be made up later, overall industrial growth is unlikely to return to the rates seen last year. Meanwhile, the account of September’s ECB meeting, published this week, did little to change our view that the Bank will raise interest rates more quickly than investors expect.