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German industrial output up in December; fourth month of gains

Published 06/02/2015, 10:48
© Reuters. Robot arms coat a Porsche Macan at the new plant in the eastern German city of Leipzig

BERLIN (Reuters) - German industrial output rose less than expected in December, economy ministry data showed on Friday, in a further sign that Europe's largest economy had a steady if slow end to 2014.

Production inched up 0.1 percent month on month led by the manufacturing sector, undercutting the consensus forecast for a 0.4 percent gain.

But with November's data being revised up to a 0.1 percent rise from a previously reported 0.1 percent decline, the latest figures also marked the first time since early 2011 that German industrial production had increased for four months in a row.

That showed the country's industrial sector "has overcome its phase of weakness," the ministry said in a statement.

A recent increase in industrial orders and improved business morale pointed to an upturn in the economy in coming months, it added.

ING economist Carsten Brzeski said the data showed that Germany's industrial machine was gradually regaining momentum.

For Germany, sharp falls in energy prices and a weaker euro were effectively a "very special stimulus package which almost came for free", he said.

The German economy grew by around 0.25 percent in the final three months of 2014 after having skirted a recession in the third quarter, according to preliminary data.

Over the year, it grew 1.5 percent and the government expects gross domestic product to increase by the same rate this year.

Data suggests the economy got off to a strong start in 2015 as companies profited from the lower oil prices and currency declines that have made the country's exports more competitive.

Business morale rose to its highest level in six months in January, climbing for a third consecutive month.

© Reuters. Robot arms coat a Porsche Macan at the new plant in the eastern German city of Leipzig

In another sign of a surge in activity ahead, German industrial orders rose far more than forecast in December to hit their highest since April 2008, data showed on Thursday.

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