Germany's industrial output rebounds exceeding estimates in January

Output returns to growth after August contraction thanks to strong hikes in manufacture of electronic equipment, chemicals and chemical products

By Tuba Sahin

ANKARA (AA) – Germany’s industrial output surged 3.4% month-on-month in January, exceeding economists' expectations, according to official data released on Wednesday.

The figure improved from an upwardly revised 2.4% contraction in December 2022, German statistical authority Destatis said in a statement.

The market estimated industrial production would grow 1.4% from a month ago in January.

The strong monthly hike in the main reading was driven in particular by strong growth in the manufacture of electronic equipment (up 7.1% on the prior month) and the manufacture of chemicals and chemical products (up 9.8%).

On the other hand, the manufacture of motor vehicles, trailers and semi-trailers fell 5.2% and the manufacture of basic pharmaceutical products and pharmaceutical preparations dove 12.9%, two important sectors of German industry.

Production of consumer and capital goods slipped 1.8% and 0.6%, respectively, compared to a month earlier.

Output of intermediate goods, on the other hand, surged 6.9% from December 2022

On an annual basis, Germany’s industrial production fell 1.6% in January.

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