In Germany in the first month of this year industrial production grew by 0.6% compared to December of 2014. The indicator is increasing for 5 consecutive months.
According to analysts, the industrial production should have extended by 0.5%. Annually the industrial production grew by 0.9%, the forecast was 0.2%.
A stable growth points to the German economy recovery. During the period from October to December, GDP increased due to the falling oil prices and the national currency weakening. GDP growth led to the business confidence augmentation and supported consumer spending. However, demand on the industrial products reduced in the first months of 2015.
Experts believe that QE planned by the ECB will have a positive influence on the country’s economy. “The lower oil price lifts purchasing power not only in Germany but also abroad; hence, it is good news for internal demand and German exports alike,” said Andreas Rees, an economist at UniCredit SpA in Frankfurt. “The weaker euro exchange rate provides further tailwinds for export-dependent companies.”
Construction surged by 5% and investment-goods output rose by 0.5%. Manufacturing and energy output remained unchanged. However, production of basic and consumer goods each fell by 0.4%.
