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German Industrial Output Decreased in April

Autore: Staff for Oanda

German industrial output declined more than economists forecast in April. According to a report from the German Ministry of the Economy released today, production declined 2.2 percent from March, when it had grown 2.2 percent, and factory orders dropped 1.9 percent in April.

The report also showed that construction output fell 6 percent from March, when it had surged 26 percent. Production of investment goods, such as machines, declined 3.6 percent, while energy output rose 2.4 percent. German exports increased 1.7 percent in the first quarter, mainly driven by the markets outside the euro area.

The recent data indicates that growth in Europe’s largest economy is slowing as the debt crisis dampens demand. Furthermore, worries about Spanish banks and potential Greek exit from the euro zone have negative influence on business and investor sentiment and economic outlook for the euro area as a whole.

The European Commission predicts German economic growth of 0.7 percent this year compared with a 0.3 percent contraction for the euro area as a whole.

Source: Bloomberg


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