Industrial Production in Germany jumped more than expected in January, the official data showed on Tuesday, suggesting that the manufacturing sector recovery is gathering steam.
Eurozone’s economic powerhouse’s industrial output climbed by 2.7% MoM, the federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects, vs. a 0.5% increase expected and 1.1% last.
On an annualized basis, the German industrial production dropped by 1.8% in January versus a 2.7% drop registered in December. Markets expected the industrial output to rebound sharply by 4.2% in the reported month.
FX implications
The shared currency is pressurizing lows near 1.0850 on the mixed German industrial figures.
At the time of writing, EUR/USD is trading at 1.0853, modestly flat on the day.
About German Industrial Production
The Industrial Production released by the Statistisches Bundesamt Deutschland measures outputs of the German factories and mines. Changes in industrial production are widely followed as a major indicator of strength in the manufacturing sector. A high reading is seen as positive (or bullish) for the EUR, whereas a low reading is seen as negative (or bearish).
