Germany: Industrial production records deeper contraction in March
May 10, 2016
In March, industrial production decreased 1.3% over the previous month in seasonally-adjusted terms, marking a deterioration compared to February’s 0.7% fall and the lowest reading in 19 months. Moreover, March’s result fell short of market expectations of a softer 0.2% decrease. The drop reflected setbacks across all sectors, except for electricity and energy supply. The decrease in manufacturing output steepened. On top of this, mining and quarrying along with construction fell into contraction. In fact, the latter category recorded the largest drop in three years.
Compared to the same month of the previous year, industrial production rose 0.3% in March, which came in below February’s 2.0% rise. The overall trend stabilized as annual average growth in industrial production remained at February’s 0.9%.