Germany: Industrial production growth jumps to over two-year high in January
The German industrial sector started the new year on stronger footing, with output growing 3.0% month-on-month in January, an over two-year high and contrasting the revised 2.2% contraction recorded in December (previously reported: -3.5% month-on-month). The print was driven by growth in the construction sector as well as intermediate and capital goods production, while consumer goods output was flat. Energy output, however, was down.
On an annual basis, industrial production fell 1.3% in January, up from the revised 5.3% contraction in December (previously reported: -6.8% year-on-year). Annual average industrial production dropped 3.3% in January, down from a 3.4% fall in the prior month.
Going forward, the industrial sector is expected to remain in rough waters this year as external headwinds continue to linger amid Brexit, the Sino-American trade dispute and U.S.-EU tensions. Moreover, the outbreak of the coronavirus is expected to weigh on output in the months ahead as supply chains and global trade are disrupted.