Germany: Industrial output moderates
May 6, 2011
In March industrial production added a seasonally adjusted and working-day calendar 0.7% over the previous month. The reading was below the revised 1.7% expansion observed in February (previously reported: +1.6% month-on-month) but overshot private sector analysts' expectations, which had anticipated industrial output would increase 0.5%. The faster-than-expected expansion was mainly driven by strong growth in construction activity (February: +3.4% mom; March: +6.2% mom). On a year-on-year comparison, industrial production slowed from a 15.2% expansion in February to an 11.2% increase in March. The trend continues to point to a healthy recovery in the industrial sector. Annual average growth in industrial output inched up from 11.6% in February to 11.8% in March, suggesting that industrial production will remain a strong growth driver going forward.
Author: Ricardo Aceves, Senior Economist