Industrial production in Germany contradicts expectations and contracts in November.

Data released on Friday by the German Federal Statistical Office (Destat) showed a return to contraction in the country's industrial production in November, contrary to market expectations.

According to the data, Germany experienced a monthly contraction in industrial production of 1.0% in November, while market expectations forecasted a growth of 1.0% in German industrial production, after a contraction of 2.0% in October. The previous October reading was revised from a larger contraction of 2.5%.

On a yearly basis, the data showed a contraction in industrial production in Germany by 4.5% in November, which is slightly better than the previous October reading, which showed a contraction of 4.3% in German industrial production.

It is worth noting that industrial production measures the output of factories and mines in Germany, and changes in industrial production volume are a crucial indicator of the strength of the manufacturing sector in the country. A positive reading of the index is viewed as a positive or bullish indicator for the euro, while a low reading is seen as a negative or bearish indicator for the euro in Germany.