Germany: Industrial production growth eases notably in February
Industrial output grew 0.3% month-on-month in February, down from the revised 3.2% increase in January (previously reported: +3.0% month-on-month). The print reflected falling capital goods production and construction activity partially offsetting output growth in consumer, intermediate goods and energy.
On an annual basis, industrial production fell 1.2% in February, down from the revised 0.9% contraction in December (previously reported: -1.3% year-on-year). Annual average industrial production dropped 3.3% in February, down from a 3.2% fall in the prior month.
Looking ahead, the industrial sector is expected to take a hit from the Covid-19 pandemic and government-imposed social distancing measures to prevent the spread of the virus, which should limit productive capacity. The longevity and severity of the pandemic remains uncertain but will have a significant bearing on the sector’s fortunes.