German Industrial Production Drops Unexpectedly

A sharp drop in German industrial production has added to fears that the country’s manufacturing slowdown has extended into 2019 and will weigh on the eurozone economy, the Financial Times reported. Industrial output fell 0.8 per cent in January, Germany’s statistics office said on Monday, in an indication of the threat to exports from weaker global demand and political uncertainty. Analysts polled by Reuters had expected the data to show a rise of 0.5 per cent. The drop supports the findings of business confidence surveys, which have suggested that manufacturers in the eurozone’s largest economy continue to struggle. Germany avoided recession during the second half of last year by the slimmest of margins. It registered zero growth in the fourth quarter after shrinking 0.2 per cent over the previous three-month period. A recession is defined as two consecutive quarters of negative growth. Some economists downgraded their forecasts for growth this quarter after Monday’s figures. Read more