German industrial output rose less than expected in January as a harsh winter bit into construction activity, but a surge in orders suggests a rebound is just around the corner, the Economy Ministry said.
Output rose by 0.6 per cent on the month in seasonally adjusted terms, the Ministry said today, falling short of a Reuters consensus forecast for a 1.0 per cent rise. December's reading was revised up to -1.0 per cent from -2.6 per cent.
January's data was marked by a 14.3-per cent drop in construction output on the month. Manufacturing production rose 0.9 per cent.
A drop in business confidence for the first time in almost a year in February suggested a harsh winter may have sent the economy sliding back into contraction in the first quarter.
However, a purchasing managers' survey released last week showed German manufacturing activity expanded in February at its fastest rate since June 2007, boosted by a rise in new orders which pointed to brighter times ahead.
Euro zone January industrial production data due on Friday is expected to show a 0.7-per cent month-on-month rise. French and Italian industrial output figures, both due on Wednesday, are expected to show month-on-month rises of 0.2 per cent and 0.6 per cent respectively.
Reuters