INDUSTRIAL production fell sharply in Germany at the end of 2011, according to official data released yesterday, denting hopes that the Eurozone powerhouse would keep growing.
Output fell 2.9 per cent in the month to December, figures from the economy ministry showed – the largest monthly fall since the start of 2009.
In the whole quarter German industrial output fell 1.9 per cent, which Capital Economics believes will take 0.6 per cent off GDP. That represents the first decline in GDP in 10 quarters.
“It the absence of an offsetting acceleration in service sector activity, it looks likely that German GDP contracted pretty sharply at the end of the year,” said analyst Jennifer McKeown.
Construction output fell 6.4 per cent from November and capital goods production dropped 3.6 per cent.
Other data showed both the Czech Republic and Hungary are experiencing strong industrial growth, while French trade figures hit a record deficit as import growth exceeded increases in exports.
The French trade deficit hit a record high of €69.4bn (£57.8bn) in 2011, up 35 per cent on the year.
Imports rose 11.7 per cent in the year, largely driven by demand for energy, while exports rose by 8.6 per cent. Car and aerospace exports were particularly weak, though luxury goods, grains and drinks all registered healthy growth.
