German Output Unexpectedly Falls on Construction, Investment
(Bloomberg) -- German industrial production unexpectedly fell in February as construction slumped and output of investment goods dropped. The euro declined.
Factory output slid 1.6 percent, the biggest monthly decline since August 2015, compared with estimates in a Bloomberg survey for a 0.2 percent gain. Production was up 2.6 percent from the previous year and January’s data was revised to show a small increase, the Economy Ministry said on Friday.
After Europe’s largest economy expanded in 2017 at the fastest pace in seven years, signs are increasing that the momentum might be coming off its peak. Gauges for business and investor confidence have slipped and factory orders have trailed expectations, though Germany’s Bundesbank says the upturn probably continued in the first quarter as companies worked through orders accumulated in the second half of last year.
“Growth momentum should be weaker than in the previous year,” the ministry said in a statement. “But good orders and positive sentiment suggest the trend in manufacturing will continue to point upward.”
The single currency fell to an intra-day low after the report. It was little changed at $1.2230 at 8:25 a.m. Frankfurt time.
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