German Economic Growth Hampered by Auto Makers' Emissions Struggles
23 October 2018 - 12:26AM
Dow Jones News
By Max Bernhard
Economic growth in Germany may have come to a temporary halt in
the third quarter, hit by car manufacturers' obligation to have
their vehicles certified under stricter emissions-testing rules,
according to estimates by the Deutsche Bundesbank.
Germany's central bank said Monday in its monthly report for
October that industrial output was reduced by production downtimes
resulting from the industry's changeover to the new Worldwide
Harmonized Light Vehicles Test Procedure. Car makers had to deal
with production bottlenecks and the limited availability of some
models over the summer as they rushed to prepare vehicles to meet
the new standards. Almost all European manufacturers reported a
drop in car sales in September, when WLTP took effect.
A slowdown in the usually booming construction sector and the
retail industry also contributed to the development, the Bundesbank
said.
"The growth pause shouldn't last long however. Problems in the
automotive sector should soon be overcome," it said, adding it
expects economic output to speed up again in the fourth
quarter.
The first GDP release for the third quarter is scheduled for
November 14.
Write to Max Bernhard at max.bernhard@dowjones.com;
@mxbernhard
(END) Dow Jones Newswires
October 22, 2018 09:11 ET (13:11 GMT)
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