Germany's industrial output falls sharper than forecast

By Tuba Ongun

Germany’s industrial output fell more sharply than expected in February, according to official data released Monday by the country's statistical authority Destatis.

The industrial production dropped by 1.3% from the previous month in February, reversing January's 2% growth.

Markets had forecast a smaller decline of 0.9% for the month.

The downturn in February was largely driven by a 3.2% decrease in the construction sector compared to the previous month.

The food industry also saw a notable drop, with output falling 5.3%, while energy production slipped 3.3%.

Manufacturing of electrical equipment, on the other hand, rose by 3.3%, helping to offset some of the broader losses.

On an annual basis, Germany’s industrial production plunged 4% in February.