German manufacturing production increased for the fourth consecutive month in February as Europe’s biggest economy picks up.
Adjusted for seasonal fluctuations, Production (GRIPIMOM) surged 0.4 percent from the previous month, when it rose by 0.7 percent, according to data by Wiesbaden-based Federal Statistics Office on Monday. This exceeded the median estimate of a growth of 0.3 percent in a Bloomberg survey of 34 analysts.
Output grew 4.8 percent in February from a year earlier, when working days are adjusted. The economy “strengthened substantially” in the first quarter, said Bundesbank in March, pointing to the favorable winter weather and economic recovery in the euro zone.
Manufacturing advanced 0.5 percent, while intermediate goods output surged 1.3 percent. Consumer-goods production grew 0.3 percent, while construction activity fell 0.1 percent after rising 4.5 percent in January. Energy production plunged 0.9 percent.
“Germany’s economy had a super-strong winter quarter,” Christian Schulz, a London-based senior economist at Berenberg Bank told Bloomberg. “Helped by relatively mild weather, the hard data is even exceeding the solid sentiment indicators of recent months.”
The economy advanced 0.4 percent in the quarter ending December, leading the growth in the euro zone. The report for the first quarter will be published on May 15
Germany’s largest power firm RWE AG launched its biggest onshore wind farm this month. New car sales rose in March, the fourth consecutive month.
The euro remained slightly unchanged at $1.3704 as of 8.41 a.m. in Frankfurt. Germany’s 2-year government bonds’ yield fell 3 basis points to 0.161 percent.
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