German industrial output sees surprise uptick in January

6th March 2015, Comments 0 comments

German industrial production grew more than expected in January while the figure for December was corrected sharply upward, data showed on Friday.

According to regular data compiled by the economy ministry, factory output increased 1.0 percent in December corrected for seasonal factors, far higher than the 0.1 percent announced initially.

In January, the figure climbed 0.6 percent compared to the previous month, better than the 0.4 percent consensus forecast published by financial services firm FactSet.

Analyst Carsten Brzeski at ING-Diba bank noted that it was the first time since early 2011 that manufacturing output in Europe's top economy rose for five months in a row.

But he said the German economy was "living in two worlds", one in which "consumption is strong and the construction sector is flourishing and on the other side the traditional industrial backbone which is struggling to gain real momentum".

On Thursday, Germany reported for January a nearly four-percent fall in industrial orders, a key measure of demand for goods, following a strong increase the previous month.

© 2015 AFP

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