Berlin - German
industrial production posted a modest rise in January as cold winter weather hit output in Europe's biggest economy, the Ministry of Economics and Technology said Monday. Output edged up by 0.6 per cent in January, the ministry said, after a jump in
energy output helped to offset a sharp fall in building sector production amid freezing temperatures and regular snowfalls.
Releasing the latest data, the ministry revised the December data from an initial estimate of a 2.6-per-cent fall to a 1-per-cent drop.
Analysts had forecast that the ministry would say that adjusted for price and seasonal changes, output had increased by 1.2 per cent in January.
The publication of the data followed figures published Friday showing German factory orders jumping by 4.3 per cent in January. Analysts had forecast a rise of 1.3 per cent in Germany order books. Releasing the output data, the ministry said cold winter weather had resulted in production in the building industry plunging by 14.3 per cent.
This came after the sub-zero temperatures forced
construction companies to delay outside building work.
At the same time, output from the energy sector jumped sharply by 8.8 per cent in January.
However, economists were quick to point out that the economic fundamentals behind Germany's recovery from its steepest downturn in more than six decades remained in place.
The sharp drop in construction activity underscores that, in the very short-term, "the bad winter weather is a clear impediment to growth," said ING Bank economist Carsten Brzeski.
"However, under the solid blanket of snow, the fundamentals are promising, scotching any double-dip fantasies quickly," he said.
Year on year, however, industrial production posted its first increase since August 2008, rising by 2.2 per cent after contracting by 5.7 per cent in December.
Meanwhile, Germany's electronics industry (ZVEI) said the sector's order books swelled by 10 per cent in January versus the same month in 2009. The sector logged a 4-per-cent increase over December.
This came after foreign orders climbed by 14 per cent on the year in January, with domestic orders gaining 7 per cent, the ZVEI said. Industry revenue, however, came in at 2 per cent below the January 2009 level.
