Germany: Industrial output increases more than expected in December
February 7, 2013
In December, industrial production rose 0.3% over the previous month in seasonally adjusted terms. The increase contrasted the revised 0.2% decline recorded in November and overshot market expectations of a 0.2% gain. The monthly improvement mainly reflected faster growth in manufacturing production, which increased 1.2% in December, up from a flat reading in November.
Compared to the same month the previous year, industrial production declined a working-day adjusted 1.1% in December, which, nonetheless, represents an improvement compared to the 3.1% contraction observed in November.
In the full-year 2012, industrial production contracted 0.8%, amid weaker demand from the Eurozone, Germany's main trading partner. The reading contrasts the robust 8.1% expansion observed in 2011.
Meanwhile, the government expects sluggish economic growth going forward and projects the economy to expand 0.4% this year. For 2014, the government sees economic growth picking up to 1.6%. The German Central Bank estimates that economic growth will also increase 0.4% this year, before accelerating to 1.9% in 2014.
Author: Ricardo Aceves, Senior Economist