Strong German industry defies Europe’s slump
INDUSTRIAL output jumped sharply in Germany in March, official data showed yesterday, adding to hopes that the resilient economy has avoided joining much of the rest of the Eurozone in recession.
Production shot up 2.8 per cent in the month, led by a 30.7 per cent rebound in construction on the good weather, but also aided by a three per cent rise in consumer goods output and two per cent increase in capital goods production.
The rise follows a 0.3 per cent fall in output in February and a 1.2 per cent increase in January.
On an annual basis, the growth rate now stands at 1.6 per cent, up from zero in the year to February and 1.3 per cent in January.
“March’s sharp rise in German industrial production reduces the risk that the economy is already in recession,” said Jennifer McKeown from Capital Economics.
“But the underlying picture is still one of a sharp slowdown in the sector which will leave GDP growth muted at best this year.”
Purchasing managers’ index (PMI) figures from Markit showed services sector activity expanded at a slowing pace in April and construction output stagnating in the month.