German manufacturing drop raises concern for year-end chill

German industrial output posted its steepest drop in more than a year in September, raising concerns that Europe’s biggest economy may feel a year-end chill from a slowdown in emerging markets.

The second straight fall in production, on the back of a sharp decline in industrial orders in September, prompted several economists to scale back forecasts for German growth.

Following their 1.1% drop in industrial production, economists at JP Morgan also cut third-quarter growth forecasts for the broader eurozone.