German industry activity to improve in Q3, but risks rising in Q4

In first half of the year, momentum in German industrial activity remained very weak but the ratio of orders to inventories have picked up markedly in August and September which should imply that quarterly growth in industrial production should improve markedly in Q3. 

"Germany's Industrial output is likely to have increased by 0.6% mom in August, following the 0.7% mom increase in July", says Societe Generale.

However, the momentum is still expected to weaken into Q4. As the German economy currently is more dependent on consumption, this may still not have a major impact on growth, which is likely to be close to potential in Q4.