Germany rebound eases concerns

A STRONGER-THAN-EXPECTED rebound in German industrial output in March and an increase in exports in the same month helped to ease concern on Tuesday that growth in Europe’s biggest economy had come to a standstill at the start of the year.

The Federal Statistics Office said industrial production rose 1.0 per cent on the month, the strongest increase since November and above expectations for a 0.8 per cent rise.

“The upswing remains intact,” the Economy Ministry said. The government expects growth of 2.3 per cent this year, up from 2.2 per cent in 2017.

Seasonally adjusted exports rose 1.7 per cent while imports fell 0.9 per cent, widening Germany’s trade surplus to 22 billion euros (£19.3bn) in March, the data showed.

“German companies continue to do well on international markets,” said Holger Bingmann, head of the BGA trade body. In the first quarter, exports rose nearly 3 per cent on the year, he said, adding: “Trade is still driving the German economy.”

US President Donald Trump has repeatedly criticised Germany’s export strength, arguing that US import tariffs would protect American manufacturing jobs.

The bullish output and export figures brought some relief after weak data for January and February pointed to a massive slowdown in the first quarter.