German Industrial Production Rises On Robust Construction Growth
05 April 2019 - 7:56PM
RTTF2
Germany's industrial production rose in February after
stagnating at the start of the year, driven by a surge in
construction, while manufacturing output dropped leading to a
further worsening of expectations of a rebound in the biggest euro
area economy.
Industrial production grew a price, seasonally and calendar
adjusted 0.7 percent, preliminary figures from the Federal
Statistical Office showed on Friday, which was slightly slower than
the 0.8 percent gain economists had predicted.
January's originally reported decline of 0.8 percent was revised
to 0 percent.
Energy production decreased 3.1 percent, while the output in
construction grew 6.8 percent in February.
The mild weather contributed to the boom in the construction
sector in February, the economy ministry said. A survey from IHS
Markit showed on Thursday that the German construction sector grew
the most in 14 months in March, led by strong gains in residential
and commercial activity that boosted job creation.
Excluding energy and construction, production fell 0.2 percent
from the previous month in February.
Capital goods output increased by 0.6 percent, while the
production of intermediate goods decreased by 0.6 percent.
Manufacture of consumer goods shrunk 1.6 percent.
The industrial activity is set to remain muted in coming months,
due to weak order growth and the gloomy business climate, the
economy ministry said.
Data released on Thursday showed that Germany's manufacturing
orders unexpectedly decreased in February at the fastest pace in
over two years, mainly driven by a slump in foreign demand.
On Thursday, the country's leading economics research institutes
slashed their forecast for economic growth this year, but
re-affirmed that the likelihood of a recession is very small.
On a year-on-year basis, industrial production fell 0.4 percent
in February after a 2.7 percent slump in January. Economists had
expected a 0.8 percent fall.
In the January to February period, production rose 0.8 percent
from the previous two months, led by a 4.4 percent jump in
construction. Industrial production dropped 0.1 percent and the
automobile industry reported a 1 percent fall in output.
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