Germany: Industrial output rebounds
July 7, 2011
In May, industrial output jumped a seasonally and working-day adjusted 1.2% over the previous month, which more than compensated for the 0.8% contraction registered in April (initially reported: -0.6% month-on-month) and exceeded market expectations of a 0.8% increase. On a year-on-year comparison, industrial production rose 7.6% in May, slower than the 9.3% increase registered in April. The monthly improvement was primarily the result of a rebound in manufacturing and energy supply, and particularly in construction, which reversed a contraction in the previous month. Only mining and quarrying continue to be mired in the red. Despite the monthly expansion, the trend suggests that after continuous growth since December 2010, the industrial sector has passed its growth peak in March, with average growth in industrial output falling from 11.5% in April to 11.0% in May. Moreover, the Bundesbank anticipates the economy will grow 3.1% this year. For 2012, the Bank expects the economy to expand 1.8%.
Author: Ricardo Aceves, Senior Economist