FRANKFURT AM MAIN: German industrial output fell sharply in February, official data showed Friday, in the latest sign that Europe's booming top economy lost some steam at the start of the year.
Industrial production slipped 1.6 percent month-on-month following a meagre 0.1-percent rise in January, federal statistics authority Destatis said, according to figures adjusted for seasonal swings.
The drop surprised analysts surveyed by Factset who had predicted a 0.3-percent increase in production.
It comes a day after Germany's industrial orders also disappointed, as businesses fret over the threat of a global trade war amid heated rhetoric between the United States and China.
February's plunge in industrial output was led by steep declines in manufacturing and construction.
The only bright spot came from energy firms whose output climbed 4.0 percent, boosted by a snap of cold weather.
The German economy ministry said despite the weak start, it remained confident that industrial activity "will continue on an upward path" in 2018.
"However, growth momentum is likely to be weaker than last year," it warned.
Stephen Brown, an analyst at Capital Economics, said the outlook for Europe's powerhouse was still rosy.
"The German economy made a soft start to the year, but the business surveys suggest that this should prove temporary," he said.
The government expects the German economy to grow by 2.4 percent this year, after 2.2 percent in 2017.
Comments
Comments are closed.