German industrial output picked up again in January, the government said Wednesday, as the weather warmed, consumption continued to rise and companies cranked out intermediate goods. Output gained 1.8 percent from December, the economy ministry said, in line with an average analyst forecast compiled by Dow Jones Newswires.
The ministry also revised its figure for December sharply higher, though it still showed a monthly decline of 0.6 percent from the initially given fall of 1.6 percent. Compared with a year earlier, industrial output showed a gain of 12.5 percent, close to its 2010 peak of 13.7 percent.
In January, industrial production was boosted by construction activity, which bounced back with a monthly gain of 36.3 percent after slumping more than 24 percent in December amidst the coldest temperatures seen that month since 1969, according to UniCredit economist Alexander Koch. He called the rebound "astonishing" and said it was the second-largest monthly increase on record.
January also saw a 5.3 percent increase in intermediate goods used in various manufacturing processes. Output of consumer goods rose 5.1 percent, another sign that German households have a brighter outlook as unemployment falls to the lowest level since current records began in 1999. After suffering its worst post-war recession in 2009, the German economy, the biggest in Europe, posted record post-reunification growth of 3.6 percent last year.
The government forecasts growth of 2.3 percent this year and 1.8 percent in 2012. On Tuesday, the central bank said growth could be 2.5 percent this year and private banks have issued estimates of up to 3.0 percent. Figures released Tuesday by the economy ministry showed that industrial orders jumped 2.9 percent in January following a slump in December of 3.6 percent. The latest data "show that another smashing quarter is in the making. It looks as if the high-flyer of last year is taking off again," ING senior economist Carsten Brzeski said.
Comments
Comments are closed.