6 Mar 2015
Germany industrial production supported by construction – ING
FXStreet (Barcelona) - Carsten Brzeski of ING, explains that the increase in Germany’s industrial production suggests some caution as the gains were facilitated mainly by flourishing construction, while IP excluding construction only grew 0.2%mom.
Key Quotes
“Industrial production started the new year on a positive note, increasing by 0.6% MoM in January, from a strongly revised 1.0% in December. On the year, industrial production is up by 0.9%. This is the first time since early 2011 that industrial production has increased for five months in a row.”
“Looking at the details, however, shows that some caution is justified. The increase was only driven by stronger production of capital goods and a surge of activity in the construction sector (+5% MoM). Other sectors were less active.”
“While the headline number is good news for growth in the first quarter, the details suggest that the German economy is currently in two worlds - the domestic part, where consumption is strong and the construction sector is flourishing and on the traditional industrial backbone which is struggling to gain real momentum.”
“Over the last two years, industrial production excluding construction has increased by 0.2% MoM on average each month.”
Key Quotes
“Industrial production started the new year on a positive note, increasing by 0.6% MoM in January, from a strongly revised 1.0% in December. On the year, industrial production is up by 0.9%. This is the first time since early 2011 that industrial production has increased for five months in a row.”
“Looking at the details, however, shows that some caution is justified. The increase was only driven by stronger production of capital goods and a surge of activity in the construction sector (+5% MoM). Other sectors were less active.”
“While the headline number is good news for growth in the first quarter, the details suggest that the German economy is currently in two worlds - the domestic part, where consumption is strong and the construction sector is flourishing and on the traditional industrial backbone which is struggling to gain real momentum.”
“Over the last two years, industrial production excluding construction has increased by 0.2% MoM on average each month.”