German industrial production rises at sharpest rate since 2009

 
Chris Papadopoullos
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Manufacturing output rose by a healthy 3.2 per cent (Source: Getty)

Industrial production in Germany, the Eurozone's largest economy, jumped 3.3 per cent in January on the month before, figures released this morning show.

Production was lifted by construction, which rose seven per cent. Manufacturing output climbed 3.2 per cent, the data from German statistical office Eurostat shows.

Industrial production makes up nearly a third of the German economy's total output.

"Germany’s economy has seemingly shaken off the weakness in global trade in January, however, its export-dependent industry remains at risk to further slowdown in emerging markets," said economists Olga Tschekassin and Francois Cabau from Barclays.

The sharp rise in industrial production goes against recent data showing a weakness in factory orders, suggesting some future weakness is due.

"It must be noted, however, that, ahead of this release, production was well below the level implied by orders," said economist Dominic Bryant from BNP Paribas.

"It is now well above the level consistent with orders data. It would not be surprising if manufacturing production fell by two per cent or more in the next month or so."

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