Germany's industrial output witnessed a significant uptick in February, surpassing expectations with a 2.1% increase, driven by gains in the construction and automotive industries. This positive shift suggests a potential move away from recent manufacturing downturns.
Destatis reported a seasonally adjusted rise in manufacturing, energy, and construction sectors, marking an improvement from January's revised 1.3% increase. Economists had anticipated a modest 0.3% growth, highlighting the unexpected strength of the rebound, WSJ noted.
Despite challenges stemming from reduced reliance on Russian gas and subdued global demand, indicators of a cautious recovery emerge. This resurgence is underscored by a recent uptick in new factory orders.
Construction output soared by 7.9% due to favorable weather, with significant contributions from the automotive and chemical sectors. Energy-intensive industries also experienced a notable 4.2% growth.
However, year-on-year figures for February show a 4.9% decline in industrial production, maintaining a cautious outlook. Analysts, including Franziska Palmas of Capital Economics, anticipate ongoing challenges for the sector, citing weak demand and competitive pressures.
