In October, German industrial production rose for the first time in three months, making a strong start to the fourth quarter. On a monthly basis, German production rose by 0.8% M/M, while a more moderate increase was expected (by 0.3% M/M). The details show that strength was broad-based as manufacturing and mining (0.8% M/M), energy (1.1% M/M) and construction (0.4% M/M) all rebounded. Within the manufacturing sector, production of capital goods (2.2% M/M) and durable consumer goods (2.5% M/M) increased, while intermediate goods (-0.4% M/M) and non-durable consumer goods (-0.5% M/M) weakened. After already strong order data on Tuesday, this outcome is another encouraging sign that the German econ-omy is holding up better than most had feared. Nevertheless, the trend re-mains downward as the rebound remains fairly limited after the sharp declines over then previous months.