Germany: Industrial production expands unexpectedly for second consecutive month
May 8, 2013
In March, industrial production expanded 1.2% over the previous month in seasonally adjusted terms, which doubled the revised 0.6% rise recorded in February (previously reported: +0.5% month-on-month). The reading contrasted market expectations of a 0.1% drop. The March acceleration came in on the back of faster growth in manufacturing production and a solid expansion in mining and quarrying, as well as in electricity and energy supply.
Compared to the same month last year, however, industrial production declined a working-day adjusted 2.5% in March, which marks a deterioration over the 1.7% contraction observed in February.
As a result, the trend continues to point downwards, with annual average variation in factory output falling from minus 0.9% in February to minus 1.2% in March.
Panellists polled by FocusEconomics expect that industrial production will contract 0.4% this year, which is down 0.6 percentage points from last month's forecast. For 2014, the panel sees industrial production rebounding and expanding 2.4%.
Author: Ricardo Aceves, Senior Economist