By Max Bernhard 
 

Economic growth in Germany may have come to a temporary halt in the third quarter, hit by car manufacturers' obligation to have their vehicles certified under stricter emissions-testing rules, according to estimates by the Deutsche Bundesbank.

Germany's central bank said Monday in its monthly report for October that industrial output was reduced by production downtimes resulting from the industry's changeover to the new Worldwide Harmonized Light Vehicles Test Procedure. Car makers had to deal with production bottlenecks and the limited availability of some models over the summer as they rushed to prepare vehicles to meet the new standards. Almost all European manufacturers reported a drop in car sales in September, when WLTP took effect.

A slowdown in the usually booming construction sector and the retail industry also contributed to the development, the Bundesbank said.

"The growth pause shouldn't last long however. Problems in the automotive sector should soon be overcome," it said, adding it expects economic output to speed up again in the fourth quarter.

The first GDP release for the third quarter is scheduled for November 14.

Write to Max Bernhard at max.bernhard@dowjones.com; @mxbernhard

(END) Dow Jones Newswires

October 22, 2018 09:11 ET (13:11 GMT)