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German Industrial Output Rose More Than Forecast in February

Car Production in Germany
An employee uses a Robert Bosch GmbH drill on the rear assembly of a new BMW C Evolution electric scooter by BMW Motorrad, a unit of Bayerische Motoren Werke AG, on the works production line in Berlin. Photographer: Krisztian Bocsi/Bloomberg

April 7 (Bloomberg) -- German industrial output rose for a fourth month in February in a sign that growth in Europe’s largest economy continued to accelerate.

Production, adjusted for seasonal swings, climbed 0.4 percent from January, when it gained a revised 0.7 percent, the Federal Statistics Office in Wiesbaden said today. Economists predicted an increase of 0.3 percent, according to the median of 34 estimates in a Bloomberg News survey. Production jumped 4.8 percent in February from the previous year when adjusted for working days.

The German economy saw a “substantial strengthening” in the first quarter, the Bundesbank said last month, citing a recovery in the euro area and warm winter weather that bolstered construction. Factory orders expanded and unemployment declined in February, countering risks ranging from a slowdown in China to mounting tensions with Russia.

“Germany’s economy had a super-strong winter quarter,” said Christian Schulz, senior economist at Berenberg Bank in London. “Helped by relatively mild weather, the hard data is even exceeding the solid sentiment indicators of recent months.”

The euro was little changed at $1.3704 at 8:41 a.m. Frankfurt time. The yield on German 2-year government bonds was 3 basis points lower at 0.161 percent.

Wind Farm

Manufacturing increased 0.5 percent, consumer-goods output rose 0.3 percent, and intermediate goods production advanced 1.3 percent, today’s report showed. Construction output dropped 0.1 percent after surging 4.5 percent in January. Energy output slid 0.9 percent.

RWE AG, Germany’s biggest power producer, started building its biggest onshore wind farm in the country this month. New car registrations rose for a fourth month in March, as Daimler AG’s Mercedes-Benz unit posted its best monthly sales ever.

The German economy grew 0.4 percent in the three months through December, helping drive the revival in the euro area. The statistics office will publish first-quarter data on May 15.

The European Central Bank kept its benchmark interest rate unchanged at a record-low 0.25 percent last week, and President Mario Draghi said officials are ready to use all possible tools including quantitative easing to head off the threat of deflation in the euro region.

To contact the reporter on this story: Alessandro Speciale in Frankfurt at

To contact the editors responsible for this story: Craig Stirling at Paul Gordon, Angela Cullen

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