German industry has rebounded more strongly than expected at the start of this year after factory production grew at the fastest rate for a year in February, thanks to strong growth in construction and carmaking.
The 2.1 per cent monthly increase in output was the second month of solid growth for German industry after growth was revised up to 1.3 per cent in January, according to figures published by the federal statistics agency on Monday.
The rise was well above the 0.3 per cent rise forecast in a Reuters poll by economists, who said the recent pick-up in German industry reduced the chances of Europe’s largest economy shrinking again in the first quarter.