German industrial production drops, while trade surplus widens

(Sharecast News) - Industrial output in Germany dropped more than expected in February with production markedly down in construction industry, while the country's trade surplus expanded as exports rose to a 10-month high. Price-adjusted production declined by 1.3% in February, according to figures from the Federal Statistical Office (Destatis), pulling back after a 2.0% increase in January.

That was worse than the 1.1% fall expected by a consensus of economists.

The less-volatile three-month comparison showed that output was actually 0.1% higher between December and February than the previous three months, but still down 4.0% over February 2024.

According to Destatis, the monthly drop was mainly attributable to a 3.2% slump in construction production, while food industry output was 5.3% lower and energy production fell 3.3%. Meanwhile, the manufacture of electrical equipment increased by 3.3%.

In a separate release, Destatis revealed that Germany's trade balance increased to €17.7bn in February, compared with an upwardly revised €16.2bn in January, more or less in line with the €17.8bn market estimate.

Exports were up 1.8% over the month at €131.6bn - their highest since April 2024 - after no growth the previous month. Meanwhile, imports increased by just 0.7% after jumping 5.0% previously but still totalled €113.8bn - their highest since June 2023.