Why industrial slowdown is a major headache for Germany

Slowing industrial production is the largest headwind facing Northern Europe in the near term, according to Newton's bond manager Paul Brain.

The manager of the £572m Newton Global Dynamic fund and the £761m International Bond fund said there has been a worrying pull-back in industrial output on the continent which has even affected Germany, Europe’s strongest economy. German industrial production was weak over the winter, although March data beat analyst expectations, to post a 2.8% jump. However, the manager warned investors not to be too encouraged by recent data. During a presentation at the BNY Mellon Fixed Income Seminar this month in Paris, Brain pinpointed Northern Europe, particularly Germany, as a region where a ...