Germany: Industrial production contracts more than expected
February 7, 2012
In December, industrial output contracted a seasonally adjusted 2.9% over the previous month, which contrasted both the flat reading observed in November (previously reported: -0.6% month-on-month) and market expectations, of a 0.2% increase. The worst-than-expected figure reflected a deterioration in all major sub-categories of the index, particularly in manufacturing output and construction activity. Compared to December the previous year, industrial production increased a paltry 0.9% in working-day adjusted terms, which was well below the 4.4% expansion observed in November. In the full year 2011, industrial production grew 7.9%, slower than the 10.2% increase recorded in 2010.
Author: Ricardo Aceves, Senior Economist