I am writing a German text with some Scandinavian names which include characters like ø. In one case the ø is at the end of the word and the following whitespace is ignored.
MWE:
\documentclass{article}
\begin{document}
Near the town of Errits\o is Fredericia.
\end{document}
appears as

The word separation between "Erritsø" and "is" is missing. What is causing this problem and how can I solve it? (How) Is it affected by inputenc and/or fontenc?
Near the town of Errits\o{} is Fredericia. Spaces are gobbled after control sequences by default. – Werner Aug 05 '14 at 19:17\o. Otherwise the system has no way to recognize where the end of a command is. That's also why it is gobbled and vanishes. Otherwise you would have difficulties writing words with an\oin the middle. – Count Zero Aug 05 '14 at 19:20