German industrial production rises on construction gains
BERLIN (AP) — German industrial production rose unexpectedly in February, driven by strong growth in the construction sector.
The Federal Statistical Office reported Friday industrial production rose 0.7% over January, beating economists’ expectations of a 0.5% rise, in seasonally and calendar adjusted figures.
Industrial orders, reported Thursday, fell a strong 4.2% in February and ING economist Carsten Brzeski says the industrial production figures look bad when excluding a 6.8% construction sector increase.
The “data do not bring relief for industry, only for the economy as total,” he said in a research note.
He says “Brexit woes and the global slowdown have a stranglehold over German industry” but the sector’s struggles can only partially be explained by external factors and that it’s too early to say what direction it’s heading.