According to the preliminary data released by the German Federal Ministry for Economic Cooperation and Development, in January this year price, calendar and seasonally adjusted industrial production in Germany was stable compared to the previous month, following a revised 0.6 percent increase in December compared to November.
According to the ministry report, in January production decreased by 0.2 percent in the manufacturing industry compared to the previous month, while lower energy production was offset by a month-on-month increase of three percent in production in the construction sector.
Overall, industrial output and thus output of the goods-producing industry overall stabilized at the turn of the year from 2012 to 2013. Production was slightly higher in January than the average level of the final quarter of 2012. In the construction sector, the positive development of the finishing trades, which have now also been included in the production index, is playing a dominant role.
Meanwhile, the preliminary data show that in January new industrial orders in Germany fell by 1.9 percent compared to December 2012, in price, calendar and seasonally adjusted terms, following a revised rise of 1.1 percent in the previous month. While domestic orders softened by just 0.6 percent, orders from abroad fell clearly, by three percent, both month on month. Thanks to large orders, demand for industrial products recorded a slight recovery in the final quarter, but the drop in orders at the beginning of this year suggests that industry is yet to emerge from the period of weakness. A positive outlook for German industrial activity derives primarily from the indicators of sentiment, some of which have recorded sharp improvements.
