German industrial production growth at 13-month high

8th Apr 2024 07:31

(Sharecast News) - Industrial production increased at the fastest rate in more than a year in February after an impressive performance from the construction industry, according to figures released on Monday by the Federal Statistical Office Destatis.

Industrial production rose by 2.1% over the month, the second straight rise after a revised 1.3% increase in January (initial estimate: 1.0%).

February's reading smashed economists' forecasts for a 0.3% gain, registering the fastest monthly expansion since January 2023.

Compared with a year earlier, production was down by 4.9% in February, easing from the 5.3% decline seen in January.

Construction output increased by 7.9% over the month of February, which managed to outweigh a 6.5% decline in energy production. Nevertheless, excluding both of these elements, overall industrial production would have still increased by 1.9% from January, helped by strong gains in the automotive and chemical industries.

In other news, German exports fell by 2% in February to €132.9bn, worse than the 0.5% decline expected by the analysts, following a 6.3% increase in January.