Germany's Industrial Output Rebounds Led by Jump in InvestmentBy
Output rose 2.8% in January vs estimated 2.7% increase
Economy ministry expects continued industrial growth
German industrial production rebounded in January, reaffirming the country’s favorable economic outlook after factory orders slumped the most in eight years.
Output, adjusted for seasonal swings and inflation, rose 2.8 percent from December, when it dropped a revised 2.4 percent, the Economy Ministry in Berlin said on Wednesday. The volatile indicator’s reading compares with a median estimate for a 2.7 percent increase in a Bloomberg survey. Production was unchanged from a year earlier.
The data come on the back of report on Tuesday showing factory orders plunged at the steepest pace since 2009 amid markedly below-average demand for big-ticket items. While the slump serves as a reminder that Germany isn’t immune to risks, the ministry said a revival of manufacturing can still be expected. Last month, the Bundesbank predicted growth would pickup at the start of 2017, supported by domestic demand and a stronger global outlook.
Output in January was bolstered by a 6.1 advance in investment and 2.3 percent in consumption goods, according to the data. Construction dropped 1.3 percent, while energy production slipped 0.7 percent.