UPDATE 1-German Sept industry output rises less than forecast on virus woes

* Output up 1.6% m/m

* Reuters consensus forecast was for rise of 2.7%

* Germany in new ‘lockdown light’ since Monday (Adds background)

BERLIN, Nov 6 (Reuters) – German industrial output rose by less than expected in September as the coronavirus crisis held back activity, data showed on Friday, in fresh evidence that a recovery from the pandemic shock is slowing in Europe’s largest economy.

Industrial output increased by 1.6% on the month, figures released by the Federal Statistics Office showed. A Reuters poll had forecast a rise of 2.7%.

“The coronavirus crisis has dominated developments in the manufacturing sector for several months now,” the Federal Statistics Office said in a statement.

The economy grew by a record 8.2% in the third quarter on higher consumer spending and exports, but an aggressive second wave of infections and a new partial lockdown are now clouding the outlook for the fourth quarter and beyond.

The Ifo economic institute said earlier on Friday that production expectations for Germany’s industrial sector have weakened somewhat for the coming months, adding that it was unclear what impact lockdown measures would have.

Other recent German data have pointed to a fading recovery.

Industrial orders grew less than expected in September as euro zone orders dropped, data showed on Thursday. Business morale also fell for the first time in six months in October due to concerns about rising virus infection rates.

Germany closed bars, restaurants, gyms, cinemas, theatres and domestic tourism on Monday for a month to combat the spread of the coronavirus.

The government has said small and medium-sized firms will be able to claim compensation worth 75% of their revenues from November 2019, up to 1 million euros.

A survey released on Wednesday showed that German services activity shrank for the first time in four months in October, a sign the economy was struggling even before a partial lockdown was imposed.

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