Germany: Another batch of disappointing industrial data – ING

Carsten Brzeski, chief economist at ING, notes that after Friday’s disappointing new orders data, German industrial production in January dropped by 0.8% month-on-month and exports remained unchanged.

Key Quotes

“On the year, industrial production was down by 3.3%. While construction and the production of consumer goods rebounded somewhat in January, the production of capital and intermediate goods dropped. At the same time, however, industrial production for December was revised upwards to 0.8% MoM, from an initial -0.4% MoM.”

“It has become increasingly difficult to explain the current industrial slump in Germany by temporary factors alone. In fact, it is the combination of several one-off factors and increasing global uncertainty which is behind the ongoing disappointment.”