Germany: Industrial production recovers remarkably in January
March 8, 2016
In January, industrial production increased a sizable 3.3% over the previous month in seasonally-adjusted terms, marking the largest expansion in over six years and a turnaround over December’s 0.3% contraction. In addition, January’s result notably exceeded market expectations of a milder 0.5% rise. The rebound reflected improvements in all sectors. Manufacturing output picked up, posting the largest increase since March 2010. Moreover, construction as well as mining and quarrying both recovered, swinging from a contraction in December to a strong expansion in January. The electricity and energy supply continued to contract, albeit at a softer pace than in December.
Compared to the same month of the previous year, industrial production rose 2.2% in January, which contrasted December’s 1.3% decrease. The overall trend improved as annual average growth in industrial production increased from 0.5% in December to 0.7% in January.