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October 22, 2019

German industrial production shrank surprisingly in February 2018

German industrial productionGerman industrial production shrank surprisingly in February, according to official statistics of Destatis. These data are a signal to weaken the good upward momentum of Europe’s leading economy in the new year. The German industrial production declined by 1.6% in February compared to the previous month, when it recorded an anemic growth of 0.1% and a median expectation of the financial markets to rise by 0.3%.

This represents the strongest decline in German industrial production since August 2015, and seems to confirm that the strongest European economy has gone slightly lower at the beginning of this year.

The manufacturing (excluding energy and construction) declined by 2%, while capital goods (production assets) – by 3.1%, indicating that German companies seem to be worried about the growing threat of protectionism coming more than the US and President Trump.

The consumer goods production declined by 1.5% in February, while energy production grew by 4% and construction declined by 2.2%.

German industrial output slowed down sharply to 2.6% yoy in February 2018 from 6.6% in January and the expectations of the financial markets for a better growth of 4.4%.

The weak report is fact just a day after German statistics provided data showing a rather sluggish increase in industrial and industrial orders in February, barely 0.3% compared with January, when they showed a healthy decline of 3.5%. This is another proof that the leading European economy seems to have reached its peak of growth in 2017 and has already passed a lower gear in the beginning of the new year.

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