Industrial production in Europe's largest economy Germany rebounded faster than expected in April from a March slump, official data showed Thursday, beating analysts' expectations. Manufacturing grew 0.8 percent compared with the previous month, adjusting for seasonal effects, federal statistics authority Destatis said. Analysts surveyed by data company Factset had predicted slower growth of 0.5 percent for April.
The statisticians also issued a revised figure for March, showing a fall in industrial output of just 0.1 percent - an improvement on the 0.4 percent previously reported. A 5.7-percent expansion in energy production and a 1.0-percent boost from producer goods manufacturers pumped up April's growth figure. But the construction sector saw a pause after months of growth.
"Industrial production remains on an upward trend," the Economy Ministry said in a statement. "Solid developments in orders and revenue as well as excellent confidence levels suggest the upturn will continue in industry as well as construction." Figures published by Destatis Wednesday showed that factory orders - a volatile but closely watched indicator that often predicts manufacturing activity - fell back by 2.1 percent in April.
Nevertheless, "the current German recovery remains unbreakable," argued analyst Carsten Brzeski of ING Diba bank. High levels of employment and wages, low interest rates and government spending on the country's influx of refugees are boosting domestic demand, while the weak euro supports exports, he pointed out. "Today's industrial production data have not only confirmed this growth picture but actually provide further evidence that this recovery could gain even more momentum," Brzeski said.