Germany's industrial output rebounds led by jump in investment
[WARSAW] German industrial production rebounded in January, reaffirming the country's favourable economic outlook after factory orders slumped the most in eight years.
Output, adjusted for seasonal swings and inflation, rose 2.8 per cent from December, when it dropped a revised 2.4 per cent, the Economy Ministry in Berlin said on Wednesday. The volatile indicator's reading compares with a median estimate for a 2.7 per cent 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 per cent in consumption goods, according to the data. Construction dropped 1.3 per cent, while energy production slipped 0.7 per cent.
BLOOMBERG
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
China passes tariff law as tensions with trading partners simmer
Blinken meets Chinese counterpart Wang Yi in Beijing
South Korea’s public finances no longer a credit rating ‘strength’: Fitch
UK consumer confidence improves as inflation and taxes fall
Inflation in Japan’s capital falls below BOJ target, slows for second month
China firms are investing abroad at fastest pace in eight years