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German Industry Shrinks More Than Expected Amid Recession Risks

  • Production declined 1.4% in September; economists saw -0.1%
  • Sector is reeling from higher interest rates, China slowdown

German production declined 1.4% from August, led by the auto, electronics and pharmaceutical sectors.

Photographer: Krisztian Bocsi/Bloomberg
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German industrial output fell for a fourth month in September, highlighting the challenge that Europe’s largest economy faces in averting a recession.

Production declined 1.4% from August, led by the auto, electronics and pharmaceutical sectors, the statistics office said Tuesday. That was worse than the median estimate in a Bloomberg survey for a 0.1% drop.