German industrial output experienced a slight decline in March, although it was less than expected, mainly due to the performance in construction, according to data from the federal statistics office released on Wednesday, reports Reuters.
The industrial production decreased by 0.4% compared to February, which was smaller than the anticipated 0.6% decline forecasted by analysts.
On a less volatile basis, the three-month comparison showed a 1.0% increase in production from January to March compared to the previous three months, according to the statistics office.
While there is optimism about the end of the cyclical downturn, Carsten Brzeski, ING’s global head of macro, cautioned that the road to a substantial recovery, particularly in the industrial sector, will be lengthy.
Demand in manufacturing remains weak, with industrial orders falling by 0.4% month-on-month in March. Additionally, a survey by the Ifo Institute revealed that 39.5% of manufacturing companies reported a lack of orders in April, up from 36.9% in January.
In terms of sector-specific performance, manufacturing, excluding energy and construction, experienced a 0.4% decrease in production on a monthly basis. Energy production saw a 4.2% decrease, while construction production grew by 1.0% from the previous month, according to Destatis data.
