BERLIN: German industrial production increased in January, as mild winter weather gave a healthy boost to the construction industry, data from the country’s economy ministry showed. The data suggest that German economic growth is on a strong footing and that output may turn out to be stronger than expected.
In adjusted terms, production increased by 0.6 per cent on the month, beating the 0.5 per cent gain forecast in a survey of economists by The Wall Street Journal last week. The ministry also revised significantly the December monthly gain to 1 per cent compared with 0.1 per cent originally reported.
Today’s data provide reassurance that Germany’s 2015 upturn is broad-based,” Berenberg economist Christian Schulz wrote in a research note. “Upside risks to our full-year gross domestic product forecast of 1.6 per cent for Germany are growing,” he said.
The aggregate industrial output index got a big lift from the construction sector, which saw output rise 5.0 per cent on the month on the back of the mild winter. Output of capital goods also grew by 0.5 per cent.
The data also shed light on a possible gap in the German economy between a thriving consumer sector and an industrial base that is struggling somewhat.
Earlier in the week official data showed that German retail sales grew by almost 3 per cent in January. Cheap energy prices, low inflation and strong pay rises are all expected to support consumer spending this year.
