German industrial production figures showed growth of 1.2 per cent in March on the same month last year, beating expectations of a -0.1 per cent decline. On an annual basis the sector contracted by 2.5 per cent, better than an anticipated fall of 3.8 per cent.
Ben May, Capital Economics:
March’s German industrial production figures suggest that the sector has gained momentum over the quarter, but a sustained and robust recovery still seems unlikely.
While the monthly production numbers are not a perfect guide to the industrial component of GDP, these data suggest that a second consecutive quarterly decline in GDP may have been avoided in Q1. But with the industrial surveys of business sentiment suggesting that renewed falls in production are likely, the sector may struggle to be the main growth engine for the wider economy.