German industrial output ticked up in September as Europe's largest economy continued to rebound from the initial shock of the pandemic, official data showed Friday. Industrial production rose 1.6 percent month-on-month in September, federal statistics agency Destatis said, driven by a strong performance in Germany's key car industry. It marks the fifth month in a row that production increased, after Destatis upgraded its August figure to a rise of 0.5 percent from a fall of 0.2 percent. Output nevertheless remains well below pre-pandemic levels, with the September figure 7.3 percent down on the same month in 2019. Chancellor Angela Merkel's government introduced new restrictions this month to curb a second coronavirus wave targeting hospitality, culture and leisure services. But with factories staying open, manufacturing is not expected to be severely impacted. Although the economy as a whole will "suffer a significant setback", Germany's manufacturing sector "should be able to continue its recovery" in the final months of 2020, Andrew Kennington at Capital Economics said. Europe's top economy contracted 9.8 percent in the second quarter at the height of pandemic lockdowns, before rebounding 8.2 percent in the third quarter. Output in Germany's crucial auto industry rose by 10 percent in September compared with August when it fell by 10.3 percent, in part due to summer factory shutdowns, Destatis said. "The strong growth in the automotive industry is remarkable," said LBBW bank economist Jens-Oliver Nicklash. "The coming months will be marked by a two-speed economic cycle: robust in industry but fragile in the service sector." edf/mfp/rl