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German industrial production data has failed to match the expectations of analysts, as the country faces lower growth next year

Germany’s factories posted a meagre rise in output this November, as the slumping euro failed to lift exports.

As the value of the currency has depreciated, Germany’s exports have become relatively cheaper, yet hopes of a corresponding jump in manufacturing have yet to be realised.

Industrial production grew by just 0.2pc in October on a month earlier according to official data, falling short of the 0.3pc growth expected by economists.

The rise in production from euro weakness was “modest”, said Jennifer McKeown, senior European Economist at Capital Economics.

October’s monthly increase marked a second month of growth, taking annual growth to just 0.8pc.

On Friday the Bundesbank slashed its growth forecasts for 2014, 2015 and 2016, halving its growth estimate for next year.

Despite the dire prognosis for German growth, Jens Weidmann, the Bundesbank’s president, said that “there is reason to hope that the current sluggish phase will prove to be short-lived”.

“It is too soon to draw any firm conclusions about the fourth quarter, but at this rate the industrial sector seems unlikely to perform much better than in the third quarter, when output fell by 0.3pc”, Ms McKeown added.

“This puts a further dent in hopes that the weakness of the German economy as a whole around the middle of the year would be short-lived”, she went on to say.

The sector may receive a boost from a further depreciation in the euro, but “bold policy action” by the European Central Bank would be required to achieve this.

The production data came as a survey of eurozone investors showed its largest monthly gain since January 2013. The leap from -11.9 to -2.5 was the third largest since the survey began.