Germany: Industrial production bounces back in January amid soaring construction
March 9, 2011
In January, industrial production expanded 1.8% over the previous month in seasonally and working-day adjusted terms. The reading contrasted the revised 0.6% contraction observed in December (previously reported: -1.5% month-on-month) and defied expectations of private sector analysts, who had seen industrial output growing 1.7%. On an annual basis, industrial production accelerated from 11.3% in December to 12.5% in January. The expansion was mainly the result of a strong rebound in construction, which soared 36.3% month-on-month in January, more than reversing a dramatic 24.2% contraction in December. In December, the construction industry suffered from adverse weather conditions. Mining and quarrying also bounced back in January, expanding 18.8% after posting a contraction of 9.1% in December. As a result of the robust January reading, the trend continues to point to a strong recovery in the industrial sector, as annual average growth in industrial production rose from 10.1% in December to 10.8% in January, which marked the second consecutive month with a double-digit growth rate.
Author: Ricardo Aceves, Senior Economist