German Factory Output Rebounds In January

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German output rebounded in January, easing concerns about the outlook for the nation's key industrial sector at the start of 2017.

Industrial production in Europe's biggest economy jumped by 2.8 per cent from December when it slumped by 2.4 per cent, the Ministry for Economic Affairs said on Wednesday.

Analysts had forecast a 2.7 per cent gain in January.

On Tuesday the ministry said Germany's industrial orders plunged at their fastest rate in eight years in January as demand for bulk items dried up, raising fresh doubts about the strength of the nation's economy.


But releasing Wednesday's data, the ministry also revised up the December figure from an originally estimated three per cent contraction as the Christmas holiday season and the onset of winter hit output across the nation.

"Overall, industrial production made a good start into the new year," the ministry said, adding "industrial activity ought to continue to pick up".

Leading the January rise in output was a 6.1 per cent surge in production of investment goods and a 2.3 per cent jump in consumption goods, the ministry said.

This helped to offset a 0.7 per cent fall in energy output and a 1.3 per cent drop in construction, with the building sector hit by cold winter weather.

Industrial production was unchanged from same month in 2016, Wednesday's figures showed.

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