Industrial production fell for a second time in Europe’s largest economy.
Industrial Production fell 1.3 percent in March from the previous month, falling short of 0.2 percent decline forecasted by economists in a Reuter survey.
Intermediate goods reportedly declined 1.3 percent, while construction dropped 3.2 percent from February. Consumer goods plunged 0.2 percent and production of investment goods fell 1.4 percent. Only energy production surged 0.3 percent.
It is obvious global slowdown is still affecting the German economy after record-low unemployment showed the economy is presently thriving on increase in consumer spending due to surge in domestic demand. Also, the data that measures business confidence dropped last month as Bundesbank said “the slowdown in growth will continue in the second quarter as the economy currently have to rely on domestic demand.”
Although data published on Monday signaled that factory orders should pick up in coming months, it’s yet to be ascertained if 1.9 percent increase in overseas orders in March could be sustained given current market uncertainty.