German industrial output shows modest recovery in March
German industrial output rebounded in March after two months of decline that had kept the country's recovery at bay amid continued virus restrictions, official data showed Friday.
Production in Europe's top economy was up 2.5 percent compared with the previous month, the Destatis official statistics agency said, after a 1.9 percent drop in February. The boost outperforms the predictions of Factset analysts, who had foreseen a rise of 2.0 percent.
"After weaker industrial data in the first months of the year... industry has finally gained momentum," said Carsten Brzeski, an analyst for the ING bank.
Production was stifled early in the year by exceptional factors including Brexit, supply problems in the automotive industry and a slowdown in the construction sector.
Restrictions in place in Germany since November to curb the spread of Covid-19 have also held back productivity. But construction saw a good month in March, jumping 10.8 percent.
Production of consumer goods was up 2.9 percent, while machine tools saw an increase of 1.2 percent. However, total production was still down 4.3 percent compared to February 2020, before the effects of the pandemic began to take their toll.
Exports came in at 126.5 billion euros ($153 billion) in March, up 1.2 percent on the previous month. Exports to EU countries amounted to 67.5 billion euros-an annual increase of 21.2 percent.
The increase in production in March failed to prevent Germany from recording a 1.7 percent contraction in
GDP during the first quarter of 2021. But the government expects the economy to rebound in the second quarter, driven by continued improvement in the industrial sector.
US private firms added 742,000 jobs in April, according to a survey released Wednesday, fewer than expected but nonetheless the fourth consecutive month of gains as the economy recovers from the Covid-19 pandemic.
The data from payroll services firm ADP bolsters the case that the world's largest economy is regaining positions after the wave of mass layoffs that started in March 2020 when the pandemic shutdowns began.
The job gains were spread nearly equally across firms of all sizes, but concentrated in the service sector, particularly leisure and hospitality-which was hit hardest by the pandemic's business restrictions.