Germany Beats Estimates on Industrial Output
Yesterday’s report on factory orders in Germany was unexpectedly low as exports to other eurozone countries fell by -8.6%. Today, the country’s Economy Ministry reported that industrial output rose more than expected in January, up 1.6% month-over-month, much better than…
Yesterday’s report on factory orders in Germany was unexpectedly low as exports to other eurozone countries fell by -8.6%. Today, the country’s Economy Ministry reported that industrial output rose more than expected in January, up 1.6% month-over-month, much better than the forecast for 1.1% growth.
What today’s numbers seem to indicate is that the country’s domestic economy is strengthening and that Germany is well-positioned to avoid a significant recessionary downturn regardless of falling demand for its products from its eurozone neighbors.
The eurozone economy is expected to contract by -0.3% this year, while Germany’s economy is forecast to rise by 0.6%. That’s well below 2011 growth of 3% and much of the decrease is due to the austerity measures being imposed on other eurozone nations, which leaves them with less cash to spend on imported goods from Germany.
Contact [email protected] for any questions or corrections.
Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
